Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2020 | May 12, 2020 | |
Document and Entity Information | ||
Registrant Name | GROW CAPITAL, INC. | |
Registrant CIK | 0001448558 | |
SEC Form | 10-Q | |
Period End date | Mar. 31, 2020 | |
Fiscal Year End | --06-30 | |
Tax Identification Number (TIN) | 86-0970023 | |
Filer Category | Non-accelerated Filer | |
Current with reporting | Yes | |
Shell Company | false | |
Small Business | true | |
Emerging Growth Company | true | |
Amendment Flag | false | |
Entity Ex Transition Period | true | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity File Number | 000-53548 | |
Entity Incorporation, State or Country Code | NV | |
Number of common stock shares outstanding | 251,870,721 | |
Entity Interactive Data Current | Yes | |
Entity Address, Address Line One | 2485 Village View Drive | |
Entity Address, Address Line Two | Suite 180 | |
Entity Address, City or Town | Henderson | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89074 | |
City Area Code | 702 | |
Local Phone Number | 830-7919 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2020 | Jun. 30, 2019 |
CURRENT ASSETS: | ||
Cash | $ 156,377 | $ 483,430 |
Subscription receivable | 0 | 150,000 |
Accounts receivable, net of allowance | 142,704 | 5,903 |
Accounts receivable, related parties | 468,150 | 0 |
Interest receivable | 3,773 | 0 |
Prepaid expenses | 245,081 | 1,434,946 |
Due from related party | 0 | 16,854 |
Promissory note receivable | 94,951 | 0 |
Right to use assets, current portion | 5,959 | 0 |
Total current assets | 1,116,995 | 2,091,133 |
Property, plant and equipment, net | 845,920 | 857,599 |
Intangible assets | 200 | 0 |
Right to use assets | 271,443 | 0 |
Assets held for sale | 0 | 859,123 |
Deposits | 5,867 | 5,867 |
TOTAL ASSETS | 2,240,425 | 3,813,722 |
CURRENT LIABILITIES: | ||
Accounts payable | 311,756 | 329,980 |
Accounts payable, related parties | 164,364 | 0 |
Accrued liabilities | 116,490 | 291,723 |
Advances from related parties | 158,074 | 105,000 |
Unearned revenue | 10,330 | 0 |
Deferred rent | 0 | 2,676 |
Deferred income tax liability | 31,800 | 0 |
Lease liability, current portion | 4,774 | 0 |
Mortgage loans payable, current portion | 6,072 | 8,012 |
Liability held for sale | 0 | 446,604 |
Total current liabilities | 803,660 | 1,183,995 |
Lease liability | 277,670 | 0 |
Mortgage loans payable, current portion | 592,430 | 597,347 |
TOTAL LIABILITIES | 1,673,760 | 1,781,342 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.001 par value, 50,000,000 and 5,000,000 shares authorized as at December 31, 2019 and June 30, 2019, respectively, none issued and outstanding | 0 | 0 |
Common stock, $0.001 par value, 500,000,000 shares and 175,000,000 shares authorized, 250,068,180 and 140,744,030 issued, issuable and outstanding at March 31, 2020 and June 30, 2019 respectively. | 250,068 | 140,743 |
Additional paid-in capital | 49,300,968 | 49,632,970 |
Accumulated deficit | (48,984,371) | (47,741,333) |
Total stockholders' equity (deficit) | 566,665 | 2,032,380 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | $ 2,240,425 | $ 3,813,722 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2020 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, par or stated value | $ 0.001 | $ 0.001 |
Preferred Stock, shares authorized | 50,000,000 | 5,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par or stated value | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 500,000,000 | 175,000,000 |
Common Stock, shares issued | 250,068,180 | 140,744,030 |
Common Stock, shares outstanding | 250,068,180 | 140,744,030 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||||
Revenue | $ 30,707 | $ 39,584 | $ 269,342 | $ 173,125 |
Revenue, related parties | 534,607 | 295,584 | 1,657,909 | 372,627 |
Total revenues | 565,314 | 335,168 | 1,927,251 | 545,752 |
Cost of sales, nonrelated parties | 292,748 | 43,274 | 752,825 | 125,880 |
Cost of sale, related parties | 0 | 74,603 | 186,354 | 96,213 |
Total cost of sales | 292,748 | 117,877 | 939,179 | 222,093 |
Gross profit | 272,566 | 217,291 | 988,072 | 323,659 |
Operating expenses | ||||
General and administrative | 101,065 | 59,186 | 267,640 | 218,430 |
General and administrative, related parties | 56,819 | 30,722 | 167,261 | 36,208 |
Professional fees | 215,075 | 77,997 | 745,943 | 165,312 |
Stock based compensation | 503,171 | 287,840 | 1,508,278 | 616,344 |
Depreciation, amortization and impairment | 2,535 | 1,304 | 11,679 | 2,273 |
Total operating expenses | 878,665 | 457,049 | 2,700,801 | 1,038,567 |
Income (Loss) from operations | (606,099) | (239,758) | (1,712,729) | (714,908) |
Other income (expense): | ||||
Interest expenses | (8,937) | (15,625) | (26,917) | (33,200) |
Interest income | 1,657 | 0 | 4,723 | 0 |
Total other income (expense), net | (7,280) | (15,625) | (22,194) | (33,200) |
Income (loss) from continuing operations | (613,379) | (255,383) | (1,734,923) | (748,108) |
Income (loss) from discontinued operations | 0 | (15,763) | 491,885 | 4,559 |
Net income (loss) | $ (613,379) | $ (271,146) | $ (1,243,038) | $ (743,549) |
Basic and diluted net loss from continuing operations | $ 0 | $ 0 | $ (0.01) | $ (0.01) |
Basic and diluted net loss from discontinued operations | 0 | 0 | 0 | 0 |
Basic and diluted net loss per share | $ 0 | $ 0 | $ (0.01) | $ (0.01) |
Basic and diluted weighted average common shares outstanding | 248,531,693 | 118,411,504 | 227,354,411 | 113,058,144 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders Equity (Deficit) (Unaudited) - USD ($) | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Equity Balance, beginning of period, Value at Jun. 30, 2018 | $ 94,205 | $ 44,813,485 | $ (45,336,236) | $ (428,546) | |
Equity Balance, beginning of period, Shares at Jun. 30, 2018 | 94,205,542 | ||||
Private placements, Value | $ 15,393 | 1,149,607 | 1,165,000 | ||
Private placements, Shares | 15,392,860 | ||||
Shares issued to Officers, Directors and employees, Value | $ 4,000 | 476,000 | 480,000 | ||
Shares issued to Officers, Directors and employees, Shares | 4,000,000 | ||||
Loss for the period | (265,445) | (265,445) | |||
Equity Balance, end of period, Value at Sep. 30, 2018 | $ 113,598 | 46,439,092 | (45,601,681) | 951,009 | |
Equity Balance, end of period, Shares at Sep. 30, 2018 | 113,598,402 | ||||
Equity Balance, beginning of period, Value at Jun. 30, 2018 | $ 94,205 | 44,813,485 | (45,336,236) | (428,546) | |
Equity Balance, beginning of period, Shares at Jun. 30, 2018 | 94,205,542 | ||||
Loss for the period | (743,549) | ||||
Equity Balance, end of period, Value at Mar. 31, 2019 | $ 119,456 | 46,868,860 | (46,176,093) | 812,223 | |
Equity Balance, end of period, Shares at Mar. 31, 2019 | 119,456,430 | ||||
Equity Balance, beginning of period, Value at Sep. 30, 2018 | $ 113,598 | 46,439,092 | (45,601,681) | 951,009 | |
Equity Balance, beginning of period, Shares at Sep. 30, 2018 | 113,598,402 | ||||
Shares issued to Officers, Directors and employees, Value | $ 238 | 28,266 | 28,504 | ||
Shares issued to Officers, Directors and employees, Shares | 237,540 | ||||
Loss for the period | (196,492) | (196,492) | |||
Equity Balance, end of period, Value at Dec. 31, 2018 | $ 113,836 | 46,467,358 | (45,798,173) | 783,021 | |
Equity Balance, end of period, Shares at Dec. 31, 2018 | 113,835,942 | ||||
Shares issued to Officers, Directors and employees, Value | $ 1,882 | 116,714 | 118,596 | ||
Shares issued to Officers, Directors and employees, Shares | 1,882,483 | ||||
Shares issued to non-employees for services, Value | $ 2,721 | 211,549 | 214,270 | ||
Shares issued to non-employees for services, Shares | 2,720,805 | ||||
Conversion of accounts payable into stock, Value | $ 1,017 | 73,239 | 74,256 | ||
Conversion of accounts payable into stock, Shares | 1,017,200 | ||||
Loss for the period | (377,920) | (377,920) | |||
Equity Balance, end of period, Value at Mar. 31, 2019 | $ 119,456 | 46,868,860 | (46,176,093) | 812,223 | |
Equity Balance, end of period, Shares at Mar. 31, 2019 | 119,456,430 | ||||
Equity Balance, beginning of period, Value at Jun. 30, 2019 | $ 140,743 | 49,632,970 | (47,741,333) | 2,032,380 | |
Equity Balance, beginning of period, Shares at Jun. 30, 2019 | 140,744,030 | ||||
Shares issued under business combination, Value | $ 110,675 | (29,508) | 81,167 | ||
Shares issued under business combination, Shares | 110,675,328 | ||||
Private placements, Value | $ 278 | 49,722 | 50,000 | ||
Private placements, Shares | 277,778 | ||||
Shares issued to Officers, Directors and employees, Value | $ 451 | 89,823 | 90,274 | ||
Shares issued to Officers, Directors and employees, Shares | 450,918 | ||||
Conversion of accounts payable into stock, Value | $ 147 | 20,137 | 20,284 | ||
Conversion of accounts payable into stock, Shares | 146,987 | ||||
Shares retired under sale of subsidiary, Value | $ (9,093) | (900,296) | (909,389) | ||
Shares retired under sale of subsidiary, Shares | (9,093,888) | ||||
Loss for the period | (248,893) | (248,893) | |||
Equity Balance, end of period, Value at Sep. 30, 2019 | $ 243,201 | 48,862,848 | (47,990,226) | 1,115,823 | |
Equity Balance, end of period, Shares at Sep. 30, 2019 | 243,201,153 | ||||
Equity Balance, beginning of period, Value at Jun. 30, 2019 | $ 140,743 | 49,632,970 | (47,741,333) | 2,032,380 | |
Equity Balance, beginning of period, Shares at Jun. 30, 2019 | 140,744,030 | ||||
Loss for the period | (1,243,038) | ||||
Equity Balance, end of period, Value at Mar. 31, 2020 | $ 250,068 | 49,300,968 | (48,984,371) | 566,665 | |
Equity Balance, end of period, Shares at Mar. 31, 2020 | 250,068,180 | ||||
Equity Balance, beginning of period, Value at Sep. 30, 2019 | $ 243,201 | 48,862,848 | (47,990,226) | 1,115,823 | |
Equity Balance, beginning of period, Shares at Sep. 30, 2019 | 243,201,153 | ||||
Private placements, Value | $ 1,000 | 49,000 | 50,000 | ||
Private placements, Shares | 1,000,000 | ||||
Shares issued to Officers, Directors and employees, Value | $ 1,074 | 91,645 | 92,719 | ||
Shares issued to Officers, Directors and employees, Shares | 1,074,381 | ||||
Conversion of accounts payable into stock, Value | $ 797 | 65,306 | 66,103 | ||
Conversion of accounts payable into stock, Shares | 797,169 | ||||
Loss for the period | (380,766) | (380,766) | |||
Equity Balance, end of period, Value at Dec. 31, 2019 | $ 246,072 | 49,068,799 | (48,370,992) | 943,879 | |
Equity Balance, end of period, Shares at Dec. 31, 2019 | 246,072,703 | ||||
Private placements, Value | $ 2,000 | 98,000 | 100,000 | ||
Private placements, Shares | 2,000,000 | ||||
Shares issued to Officers, Directors and employees, Value | $ 1,651 | 106,238 | 107,889 | ||
Shares issued to Officers, Directors and employees, Shares | 1,650,649 | ||||
Conversion of accounts payable into stock, Value | $ 345 | 27,931 | 28,276 | ||
Conversion of accounts payable into stock, Shares | 344,828 | ||||
Loss for the period | (613,379) | (613,379) | |||
Equity Balance, end of period, Value at Mar. 31, 2020 | $ 250,068 | $ 49,300,968 | $ (48,984,371) | $ 566,665 | |
Equity Balance, end of period, Shares at Mar. 31, 2020 | 250,068,180 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (1,243,038) | $ (743,549) |
(Gain) from discontinued operations | (491,885) | (4,559) |
Net loss from continuing operations: | (1,734,923) | (748,108) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 11,679 | 2,273 |
Stock based compensation | 1,508,278 | 616,344 |
Non-cash interest | 0 | 6,612 |
Amortization on right to use assets | 2,377 | 0 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | (4,027) | (9,651) |
Accounts receivable | (81,380) | 49,526 |
Accounts receivable, related parties | (192,495) | (294,995) |
Interest receivable | (3,773) | 0 |
Accounts payable | (40,432) | 28,217 |
Account payable, related parties | 45,452 | 117,305 |
Accrued expenses | (122,211) | (52,184) |
Deferred rental expense | 0 | 5,352 |
Unearned revenue | (6,240) | 18,650 |
Net cash (used in) in operating activities | (617,695) | (260,659) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Cash received from business combination | 43,975 | 0 |
Purchase of property, plant, and equipment | 0 | (6,160) |
Purchase of intangible assets | 0 | (200) |
Promissory note receivable | (100,000) | 0 |
Proceeds from promissory note receivable | 5,050 | 0 |
Due from related party | 16,854 | 37,393 |
Net cash (used in) provided by investing activities | (34,121) | 31,033 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayment of mortgages | (6,856) | (6,295) |
Proceeds (repayment) from related party | (13,121) | 66,195 |
Proceeds from private placement | 350,000 | 1,165,000 |
Net cash provided by financing activities | 330,023 | 1,224,900 |
CASH FLOWS FROM DISCONTINUED OPERATIONS: | ||
Operating activities | (3,230) | 8,019 |
Investing activities | (2,030) | 74,469 |
Financing activities | (914,203) | |
Net cash (used) provided by discontinued activities | (5,260) | (831,715) |
Net increase (decrease) in cash | (327,053) | 163,559 |
Cash at beginning of period | 483,430 | 13,891 |
Cash at the end of the period | 156,377 | 177,450 |
Supplemental Disclosure of Cash Flows Information: | ||
Cash paid for interest, discontinued activities | 26,867 | 18,416 |
Cash paid for income taxes | ||
Cash paid for operating lease | 18,732 | |
Non-cash Investing and Financing Activities: | ||
Stock issued for settlement of accounts payable | 91,433 | |
Stock returned from sale of WCS | 909,389 | |
Assets acquire, net of liabilities, Bombshell | 81,167 | |
Repayment of mortgage under discontinued operation from escrow | $ 252,141 |
Note 1 - Organization and Descr
Note 1 - Organization and Description of Business | 9 Months Ended |
Mar. 31, 2020 | |
Disclosure Text Block [Abstract] | |
Note 1 - Organization and Description of Business | Note 1 – Organization and Description of Business Grow Capital, Inc. (the "Company," “we,” or “us”) (f/k/a Grown Condos, Inc.) was incorporated on October 22, 1999, in the State of Nevada. Our former wholly owned subsidiary, WCS Enterprises, Inc. (“WCS”) is an Oregon limited liability company which was formed on September 9, 2013 with operations beginning in October 2013. WCS is a real estate purchaser, developer and manager of specific use industrial properties providing "Condo" style turn-key aeroponics grow facilities to support cannabis farmers. WCS owns, leases, sells and manages multi- tenant properties so as to reduce the risk of ownership and reduce costs to tenants and owners. WCS currently owns a condominium property in Eagle Point, Oregon (the “Eagle Point Property”). On September 30, 2019, we sold WCS to the Wayne A. Zallen Trust u/a/d/ 10/24/2014 (the “Zallen Trust”), of which Wayne Zallen, our former CEO and Chairman, is the trustee and a beneficiary. See Note 5 for further information. Our wholly owned subsidiary, Resort at Lake Selmac, Inc. (formerly Smoke on the Water, Inc.) was incorporated on October 21, 2016, in the State of Nevada. The name change was effected February 3, 2020. Resort at Lake Selmac is focused on operating properties in the RV and campground rental industry and currently owns the Lake Selmac Resort located at 2700 Lakeshore Drive, Selma, Oregon (the “Lake Selmac Property”). Our wholly owned subsidiary Bombshell Technologies, Inc. (“Bombshell”), was formed as Bombshell Technologies, LLC on November 5, 2018 and converted into a corporation on June 24, 2019. We acquired Bombshell on July 23, 2019 (See Note 4). Bombshell is a full-service design and software development company focused on developing and selling software to financial services firms and advisors and is the first acquisition as part of our strategic shift into the financial technology (“FinTech”) sector and related sectors. On June 22, 2018, the Board of Directors of the Company approved an amendment to our articles of incorporation to increase our authorized capital to 180,000,000 shares, consisting of 175,000,000 shares of common stock (“Common Stock”), par value $0.001, and 5,000,000 shares of preferred stock (“Preferred Stock”), par value $0.001 (the “Recapitalization”) and to change the name of the Company to “Grow Capital, Inc.” The Company filed articles of amendment with the State of Nevada to effect the aforementioned changes on July 10, 2018 and August 28, 2018, respectively. The Company received approval from the Financial Industry Regulatory Authority ("FINRA") for the above noted corporate actions on August 8, 2019. On July 23, 2019, and effective July 25, 2019, the Board of Directors of the Company and the holders of our outstanding capital stock having a majority of the voting power, respectively, adopted resolutions to amend and restate our articles of incorporation to increase our authorized capital to 550,000,000 shares, consisting of 500,000,000 shares of Common Stock and 50,000,000 shares of Preferred Stock. The effective date of the aforementioned actions was August 29, 2019. In connection with its name change, the Company adopted a business plan focused on shifting the Company’s strategy away from rental activities focused in the cannabis industry and into the FinTech sector and related sectors. In connection with this strategy, the Company hired a new Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) and appointed a new chairman of the Company’s board of directors (the “Board”), all of whom have significant experience in the FinTech sector. The Company intends to acquire FinTech companies, such as Bombshell (see Note 4), with a clear niche and strong leadership and use its experience and understanding of the FinTech sector and access to the public markets to help its acquisitions grow. The Company is currently in the process of identifying and pursuing suitable acquisitions. In connection with the shift in the Company’s strategy away from rental activities focused in the cannabis industry, the Company sold WCS on September 30, 2019 and its operations up to the date of sale were included as Assets and Liabilities’ Held for Sale. (Note 5). While the Company actively marketed the Resort at Lake Selmac during the first and second quarters of fiscal 2020, given the current market conditions, the Company let the listing agreement expire on March 31, 2020 and we determined to continue operating the business until such time as a viable exit strategy for the resort is identified. As the Company looks to continue to expand in the financial technology and related sectors, Grow Capital expects to identify suitable acquisitions, complete those acquisitions, and grow those companies. Any potential acquisitions or divestitures remain subject to final agreements, due diligence, and typical closing conditions. Going Concern During the three and nine months ended March 31, 2020, the Company reported a net loss of $613,379 and $1,243,038, respectively. Working capital totaled approximately $127,000 (after removing prepaid stock-based compensation) with approximately $156,000 of cash on hand. The Company believes that as of March 31, 2020 its existing capital resources are not adequate to enable it to fully execute its business plan, including the acquisition of additional operations complementary to its recently acquired subsidiary, Bombshell Technologies. While the Company`s subsidiary provided approximately $900,000 in gross profit to offset operational overhead in the period, revenues are presently not sufficient to meet the Company’s ongoing expenditures. The Company is actively working to increase the customer base and gross profit in Bombshell Technologies in order to achieve net profitability by the close of fiscal 2021. These growth plans include the acquisition of several new customers, an increase to users currently subscribed to our software, as well as increased sales of customization services to new and existing customers. The Company intends to rely on sales of our unregistered common stock, loans and advances from related parties to meet operational shortfalls until such time as we achieve profitable operations. If the Company fails to generate positive cash flow or obtain additional financing, when required, the Company may have to modify, delay, or abandon some or all of its business and expansion plans, and potentially cease operations altogether. Consequently, the aforementioned items raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. The accompanying condensed consolidated financial statements do not include any adjustments that might be necessary should we be unable to continue as a going concern. Covid-19 Pandemic The recent COVID-19 pandemic could have an adverse impact on our ongoing operations. To date the Company’s primary operating segment, Bombshell, has not experienced a decline in sales as a result of the impact of COVID 19. The Company’s operations in the FinTech sector are carried out with a limited amount of person to person contact and we do not expect an impact on these operations as a result of COVID 19, however, the full effect of the COVID-19 outbreak continues to evolve as of the date of this report, is highly uncertain and subject to change. Operations of the Company’s Resort at Lake Selmac property will be delayed until such time as local government permits the resort to reopen. As the resort operations are seasonal in nature with little activity during the months November through April 1, 2020, management does not expect the delay in opening the resort for the 2020 season to substantially impact profitable operations for this business in the long term. Management is actively monitoring the situation but given the daily evolution of the COVID-19 outbreak, the Company is not able to estimate the effects of the COVID-19 outbreak on its operations or financial condition in the next 12 months. While significant uncertainty remains, the Company does not believe the COVID-19 outbreak will have a negative impact on its ability to raise additional financing, conclude the acquisition of targeted business operations or reach profitable operations. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2020 | |
Disclosure Text Block [Abstract] | |
Note 2 - Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Basis of Presentation The interim unaudited financial information has been prepared and presented in conformity with accounting principles generally accepted in the United States applicable to interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. The interim financial information has been prepared on a condensed basis, such that certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted in accordance with rules and regulations of the Securities and Exchange Commission and should be read in conjunction with the Annual Financial Statements included in the Form 10-K filed on October 15, 2019 at www.sec.gov. These interim financial statements include all adjustments that, in the opinion of management, are necessary in order to make the financial statements not misleading. Consolidation These consolidated financial statements include the accounts of Grow Capital, Inc. and its wholly owned subsidiaries, WCS (up until disposal in September 2019), Bombshell Technologies Inc. and Resort at Lake Selmac, Inc, as of March 31, 2020. All significant intercompany accounting transactions have been eliminated as a result of consolidation. In addition to consolidation for the nine months ended March 31, 2020 financial results for the nine months ended March 31, 2019 are “combined” with respect to the operations of Bombshell Technologies, Inc. under the requirements of ASC 850-50-45, which results impact the statements of profit and loss and statements of cash flows to include operations of Bombshell Technologies Inc. as though it had been acquired on inception. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We believe that it is at least reasonably possible that the estimates of amounts realizable upon our properties currently for sale at the date of the financial statements will change in the near term due to one or more future confirming events and the effect of the change would be material to the financial statements. Cash and Cash Equivalents For financial accounting purposes, cash and cash equivalents are considered to be all highly liquid investments with a maturity of three (3) months or less at the time of purchase. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash deposits. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At March 31, 2020 and June 30, 2019, the Company had $0 and $212,985 in excess of the FDIC insured limit, respectively. Accounts Receivable and Allowance for Doubtful Accounts The Company determines the allowance for doubtful accounts by considering a number of factors, including the length of time the accounts receivable are beyond the contractual payment terms, previous loss history, and the customer’s current ability to pay its obligation. When the Company becomes aware of a specific customer’s inability to meet its financial obligations to the Company, the Company records a charge to the allowance to reduce the customer’s related accounts. During the period to March 31, 2020, the allowance for doubtful accounts totaled approximately $9,243. Leases, Lease Receivables and deferred rent Upon adoption of ASU 2016-02, "Leases," in the first quarter of fiscal year ended June 30, 2020, the Company elected not to recognize leases with a term less than one year on its balance sheet. Operating lease right-of-use (ROU) assets and their corresponding lease liabilities are recorded based on the present value of lease payments over the expected remaining lease term. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rates, which are the rates incurred to borrow on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. Lease receivables are recognized when rents are due, and for the straight-line adjustment to rents over the term of the lease less an allowance for expected uncollectible amounts. Inherent in the assessment of the allowance for doubtful accounts are certain judgments and estimates including, among others, the customer's willingness or ability to pay, the Company's compliance with lease terms, the effect of general economic conditions and the ongoing relationship with the customer. Accounts with outstanding balances longer than the payment terms are considered past due. We do not charge interest on past due balances. The Company writes off lease receivables when it determines that they have become uncollectible after all reasonable collection efforts have been made. If we record bad debt expense, the amount is reflected as a component of operating expenses in the statements of operations. Intangible Assets The Company’s intangible assets consist of intellectual property. Investment In and Valuation of Real Estate Assets Real estate assets are stated at cost, less accumulated depreciation and amortization. Amounts capitalized to real estate assets consist of the cost of acquisition (excluding acquisition related expenses), construction costs, and mortgage interest during the period the facilities are under construction and prior to readiness for occupancy, and any tenant improvements, major improvements and betterments that extend the useful life of the real estate assets and leasing costs. All repairs and maintenance are expensed as incurred. The Company is required to make subjective assessments as to the useful lives of its depreciable assets. The Company considers the period of future benefit of each respective asset to determine the appropriate useful life of the assets. Real estate assets, other than land, are depreciated on a straight-line basis over the estimated useful life of the asset. The estimated useful lives of the Company's real estate assets by class are generally as follows: Land Indefinite Buildings 40 years Tenant improvements Lesser of useful life or lease term Intangible lease assets Lease term Impairment of long-lived assets The Company monitors its long-lived assets and finite-lived intangibles for indicators of impairment. If such indicators are present, the Company assesses the recoverability of affected assets by determining whether the carrying value of such assets is less than the sum of the undiscounted future cash flows of the assets. If such assets are found not to be recoverable, the Company measures the amount of such impairment by comparing the carrying value of the assets to the fair value of the assets, with the fair value generally determined based on the present value of the expected future cash flows associated with the assets (See Note 4). Share-based compensation The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. Unregistered stock awards are measured based on the fair market values of the underlying stock on the dates of grant. For service type awards, share-based compensation expense is recognized on a straight-line basis over the period during which the employee is required to provide service in exchange for the entire award. For awards that vest or begin vesting upon achievement of a performance condition, the Company estimates the likelihood of satisfaction of the performance condition and recognizes compensation expense when achievement of the performance condition is deemed probable using an accelerated attribution model. The Company capitalizes the cost of issuance grants that cover a period of employment or consulting agreement under contract or performance obligation related to future performance and amortizes the compensation related to these contracts ratably over the period of employment or at percentage of completion or other appropriate method for future performance grants. There are no issuance grants outstanding with a performance term longer than one year at March 31, 2020 and June 30, 2019. Prepaid expenses for the nine months ended March 31, 2020 and fiscal year ended June 30, 2019 include unamortized costs of issuance grants under employment and consulting contracts totalling $186,293 and $1,380,459, respectively. Fair Value of Financial Instruments ASC 820, Fair Value Measurements, defines fair value as the price at which an asset could be exchanged or a liability transferred in an orderly transaction between knowledgeable, willing parties in the principal or most advantageous market for the asset or liability. Where available, fair value is based on observable market prices or derived from such prices. Where observable prices or inputs are not available, valuation models are applied which may involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity. Income taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss and credit carryforwards. Deferred tax assets and liabilities are measured at rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statement of operations in the period that includes the enactment date. A valuation allowance is recorded when it is not more likely than not that all or a portion of the net deferred tax assets will be realized. In the quarter ended September 30, 2019, the Company issued a significant number of new shares in its acquisition of Bombshell Technologies, Inc. (see Note 4) and the cancellation of then outstanding shares upon the sale of WCS Enterprises, LLC (see Note 5). The effect of these issuances and cancellations is that most likely, the Company experienced the requisite change of control as promulgated under the US Internal Revenue Code section 382. The effect of this will be that going forward, the ability of the Company to utilize the US Federal net operating loss carryforwards of Grow Capital, Inc. from prior to these transactions will be limited in its usage. In order to determine the specific effect, the Company must perform the computations required under the Internal Revenue Code, which have not yet been performed. The Company expects it will perform the required computations once its evident that profits are likely. Net (loss) income per share Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of shares of Common Stock outstanding for the period and contains no dilutive securities. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity. For the fiscal year ended June 30, 2019 and 2018, all potentially dilutive securities are anti-dilutive due to the Company's losses from operations. All dilutive common stock equivalents are reflected in our earnings (loss) per share calculations. Anti-dilutive common stock equivalents are not included in our earnings (loss) per share calculations. The following table sets forth the number of potential shares outstanding as of March 31, 2020 and June 30, 2019: Options 500,000 Total potential shares 500,000 Reclassification Certain prior period balances have been reclassified to conform to the current period presentation in the Company’s consolidated financial statements and the accompanying notes. Recent accounting pronouncements Management has considered all recent accounting pronouncements issued and their potential effect on our financial statements. The Company's management believes that these recent pronouncements will not have a material effect on the Company’s financial statements. |
Note 3 - Revenue Recognition un
Note 3 - Revenue Recognition under ASC 606 | 9 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Note 3 - Revenue Recognition under ASC 606 | NOTE 3 – Revenue Recognition under ASC 606 ASC 606 “Revenue from Contracts with Customers” Revenues from contracts with customers are recognized when control of promised goods and services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company recognizes revenue using the five-step model as prescribed by ASC 606: 1) Identification of the contract, or contracts, with a customer; 2) Identification of the performance obligations in the contract; 3) Determination of the transaction price; 4) Allocation of the transaction price to the performance obligations in the contract; and 5) Recognition of revenue when or as, the Company satisfies a performance obligation. When a contract with a customer is signed, the Company assesses whether collection of the fees under the arrangement is probable. The Company estimates the amount to reserve for uncollectible amounts at the end of each reporting period based on the aging of the contract balance, current and historical customer trends, and communications with its customers. These reserves are recorded against the related accounts receivable. The transaction price is the consideration that the Company expects to receive from its customers in exchange for its products or services. In determining the allocation of the transaction price, the Company identifies performance obligations in contracts with customers, which may include subscriptions to software and services, support, professional services and customization. In the case of the Company’s software contracts and support services prices are predetermined based on the specific terms of the contract either in flat fee customization/license fee charges or as hourly support and/or software customization charges. Charges relative to license fees are amortized over the term of the license. Charges relative to customization of the software are charged over the term of the scope of work on a percentage of completion basis. Charges relative to support and ongoing services and professional fees are charged when incurred and control has been transferred or the work has been completed. License fees and customization of software License fees are charged as flat fees which are amortized over the term of the contract. For contracts with elements related to customized software solutions and certain build-outs or software systems that require significant modification or customization, the Company will recognize revenue using the percentage-of-completion method. In using the percentage-of-completion method, revenues are generally recorded based on completion of milestones under a scope of work or based on total estimated cost of work and percentage completion as at the balance sheet date. Software Revenue The Company generates software revenue monthly on a single fee per subscribed user basis. The Company recognizes software revenue monthly on a per user for each user that is able to deploy software and provided all revenue recognition criteria have been met. If the revenue recognition criteria has not been met, the revenue is deferred or not recognized. Customization, support and maintenance Revenue from the Company’s customization of software to meet a particular client’s needs is recognized on a percentage of completion basis over the term of the customization work and until control of the goods or services is transferred to the customer or such date the customer agrees the scope of work has been completed and the intended functionality of the software is complete and able to perform the desired service. Support and maintenance revenue is generated from recurring monthly support and is invoiced monthly based on hourly fees at predetermined rates based on each customer contract. The Customer is credited a certain number of services hours monthly based on the numbers of users actively subscribed to the software which amounts offset any monthly user fees. Support and maintenance services include e-mail and telephone support, unspecified rights to software fixes and product updates and upgrades and enhancements available on a when-and-if available basis. Professional services and other Professional services and other revenue is generated through services including onsite training, product implementation and other similar services. Professional services are generally flat fee services based on a number of hours or scope of work for each specific service. Depending on the services to be provided, revenue from professional services and other is generally recognized at the time of delivery when the services have been completed and control has been transferred. Unearned Revenue Unearned revenue represents billings or payments received in advance of revenue recognition and is recognized upon transfer of control. Balances consist primarily of license fees being amortized over the term of the customer contract and customization services which have not yet been concluded and are being deferred using the percentage-of-completion method. Condominium rentals We recognize rental income from the lease of our condo spaces ratably over the term of the rental contracts dependent upon the total cash payable to the Company by the tenant under the lease contract, which takes into account any free rental periods or rent escalation clauses granted in the contracts. In the event that tenants continue to rent past the termination date of rental contracts, rents are negotiated and recorded on a month-to-month basis. Campground space rentals and concession sales Because we rent to individuals who plan on engaging in activities that include the consumption of cannabis products while they stay at our campground facilities, we do not document our transactions for the sale of concession items or space or equipment rentals at the facility. We therefore record our revenue on a cash basis. |
Note 4 - Merger
Note 4 - Merger | 9 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Note 4 - Merger | Note 4 – Merger On July 23, 2019, (the “Closing Date”), the Company acquired Bombshell, a Nevada corporation, pursuant to a stock exchange agreement (the “Exchange Agreement”), dated June 26, 2019, by and between Bombshell, the shareholders of Bombshell (the “Bombshell Holders”). At the Closing, Bombshell became a wholly owned subsidiary of the Company. Joel Bonnette, the current President and Chief Executive Officer of Bombshell, now serves as the Chief Executive Officer of Bombshell. Pursuant to the Amendment, at the Closing, the Company acquired 100% of the outstanding shares of Bombshell (the “Bombshell Shares”) in exchange for the Bombshell Holders receiving the right to receive 110,675,328 shares (the “Consideration Shares”) of unregistered shares of the Company’s Common Stock on a pro rata basis (the “Exchange”), 33,000,000 of which were issued to the Bombshell Holders (the “Closing Shares”) at the Closing on a pro rata basis. The remaining 77,675,328 Consideration Shares (the “Secondary Shares”) were issued on September 3, 2019, to the Bombshell Holders upon the Company filing an effective amended and restated articles of incorporation (the “Charter Amendment”) that increased the number of authorized shares of Common Stock. The Bombshell Holders are also eligible to receive earn-out consideration of up to an additional 36,769,215 shares of Common Stock (the “Earn-out Shares”) earnable in tranches of 12,256,405 shares of Common Stock in each of the second, third and fourth years after the Closing, based on whether Bombshell is able to meet certain Earnings Before Interest and Taxes thresholds in each year. The Bombshell Holders include certain limited liability companies owned by (i) Jonathan Bonnette, (ii) Joel Bonnette, and (iii) Terry Kennedy. At the date of this report it remains uncertain whether the EBIT targets which permit the earn out of the first tranche of the additional shares of common stock will be achieved as at the first valuation date. The acquisition of Bombshell was not accounted for under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations. Due to the related party and common control relationships held between Bombshell and Grow Capital, Inc., the assets and liabilities of Bombshell will transfer over to the Company at their historical carrying values. The following table provides information as of July 23, 2019 of the assets acquired and the liabilities assumed in the merger: Assets Cash $ 43,975 Accounts receivable 36,079 Accounts receivable, related parties 294,995 Intangibles and other assets 200 Total Assets $ 375,249 Liabilities Accounts payable and accrued liabilities $ 60,605 Accounts payable and accrued liabilities, related parties 118,912 Advances, related parties 66,195 Unearned revenue 9,070 Unearned revenue, related parties 7,500 Customer deposits, related parties - Deferred income tax liabilities 31,800 Total liabilities 294,082 Net Assets $ 81,167 Consideration: 110,675,328 shares 110,675 Additional paid in capital $ (29,508 ) |
Note 5 - Assets Held for Sale
Note 5 - Assets Held for Sale | 9 Months Ended |
Mar. 31, 2020 | |
Disclosure Text Block [Abstract] | |
Note 5 - Assets Held for Sale | Note 5 – Assets Held for Sale (1) Assets in Oregon within the Pioneer Business Park In April 2016, the Company purchased a parcel of land near Eugene, Oregon within the Pioneer Business Park (the “Pioneer Property”) from a private seller for the amount of $326,629 plus closing costs. As part of the purchase, the Seller financed through a note payable $267,129 of the purchase price. The intent of the Company was to build an industrial condominium building on the parcel, akin to the Eagle Point Property. The Company was unable to secure additional funding via debt or equity and due to the hostility of the local county government towards the intended operations of the tenants, and consequently, the Company abandoned those plans in late calendar 2017. In December 2017, the Company made the decision to put the Pioneer Property up for sale, retained a sales agent and listed the Pioneer Property for sale at a purchase price of $399,000. At that time the Company impaired all costs incurred towards development of the land which amounted to $31,843 The financial statements show the value of the land and the related mortgage under Assets Held for Sale and Liabilities Held for Sale on the balance sheet as of June 30, 2018, respectively. In September 2018, the Company completed the sale of the Pioneer Property for a gross sales price of $349,000. After payment of all closing costs, the Company recorded a loss on sale of approximately $5,400. (2) WCS Enterprises, Inc. In the quarter ended March 31, 2019, the Company began to actively market WCS for sale and has begun negotiations with certain parties for the sale of WCS, subject to diligence, negotiation of a purchase agreement and fulfillment of typical closing conditions. In connection with these efforts, management determined that it was appropriate to classify WCS as Assets Held for Sale. On September 30, 2019, the Company entered into a membership interest purchase agreement with the Zallen Trust pursuant to which the Company sold all of the Company’s membership interests in WCS for an aggregate purchase price of $782,450. The Zallen Trust paid the purchase price by transferring to the Company 8,693,888 shares of the Company’s Common Stock, valued at $0.09 per share. The Purchase Agreement also provided that Mr. Zallen transfer to the Company an additional 400,000 shares of Common Stock to settle $36,000 in back rent owed at the time of the sale. The Company retired all of the shares received as a result of the transaction. In connection with the sale of WCS, the Company and Mr. Zallen entered into a separation and release of claims agreement pursuant to which the Company and Mr. Zallen provided a mutual release of claims against the other party and such party’s affiliates, including all claims related to Mr. Zallen’s service as an officer, employee, and director of the Company. The release of claims by Mr. Zallen resulted in the forgiveness of salary accruals of approximately $367,000 for services provided up to June 30, 2018. After payment of all closing costs, the Company recorded a gain on sale of approximately $492,000. (See detail below) (3) Discontinued Operation: (a) The Results of the Discounted Operations are as follows: Three Months Ended Nine Months Ended March 31, March 31, 2020 2019 2020 2019 Net revenues $ - $ 10,800 $ 14,400 $ 79,931 Operating expenses General and administrative - 19,573 7,964 35,861 Depreciation, amortization and impairment - 6,990 6,990 20,970 Total operating expenses - 26,563 14,954 56,831 Income (Loss) from operations - (15,763) (554) 23,100 Gain on sale 492,439 (5,412) Interest expense - - - (13,129) Income (loss) from discontinued operations $ - $ (15,763) $ 491,885 $ 4,559 (b) Assets and liabilities disposed of are as follows September 30, 2019 Assets: Lease receivable $ 40,804 Prepaid expenses 5,152 Property, plant and equipment, net 809,281 Other assets 6,150 Total Assets $ 861,387 Liabilities: Accrued liabilities 367,367 Other liabilities 79,100 Total Liabilities 446,467 Net Assets $ 414,920 Consideration: Purchaser return 9,093,888 shares of common stock, FMV at $0.10 $ 909,389 Payment on certain items during closing (2,030) Total consideration $ 907,359 Gain on sale of WCS $ 492,439 (c) Groups of assets and liabilities held for sale as of March 31, 2020 and June 30, 2019 March 31, June 30, 2020 2019 ASSETS: Lease receivable $ - $ 26,403 Prepaid expenses - 10,299 Property, plant and equipment, net - 816,271 Other assets - 6,150 TOTAL ASSETS $ - $ 859,123 LIABILITIES: Accounts payable and accrued liabilities $ - $ 367,504 Other liabilities - 79,100 TOTAL LIABILITIES - 446,604 NET ASSETS $ - $ 412,519 (5) Mortgages Payable related to assets held for sale on Pioneer Property and Eagle Mountain Property March 31, 2020 June 30, 2019 Liability held for sale – Mortgages on Eagle Mountain Property $ - $ - Liability held for sale – Mortgage on Pioneer Property - - $ - $ - In 2013, upon the acquisition of the Eagle Point Property, WCS assumed the sellers’ mortgage from People’s Bank of Commerce, NA (“People’s Bank”). The original principal amount of the mortgage was $930,220, had an interest rate equal to People’s Bank’s prime rate plus 1.75%, required 58 monthly payments of $5,946 and required a balloon payment of $802,294 on June 28, 2018, the maturity date. The mortgage was secured by liens against certain properties owned by the seller. In August 2018, the Company paid the mortgage in full. As of March 31, 2020, and June 30, 2019, the balance on the mortgage was $0. In 2013, after the acquisition of the Eagle Point Property, WCS entered into a second mortgage with People’s Bank for the amount of $120,000. The mortgage had an interest rate equal to People’s Bank’s prime rate plus 3%, required 56 monthly payments of $883, and required a balloon payment of $104,329 on October 15, 2018, the maturity date. The mortgage was collateralized by a deed of trust and assignment of rents with the seller and WCS in the amount of $120,000. In August 2018, the Company paid the mortgage in full. As of March 31, 2020, and June 30, 2019, the balance on the mortgage was $0. In April 2016, the Company acquired the Pioneer Property and entered into a mortgage with the seller for the amount of $267,129. The mortgage originally had an interest rate of 6% per annum and a maturity date of the earlier of (a) October 1, 2017 or the date construction begins on the condominium building proposed to be built. In October 2017, the Company entered into an amended mortgage by making a principal payment of $15,000 and financing the remaining balance of $252,129. The amended mortgage bears interest at the rate of 6% per annum and required interest only monthly payments of $1,261 from November 2017 through June 2018 with the remaining amount due in the form of a final balloon payment in July 2018. As noted above in Note 4, in September 2018, the Company closed on the sale of the parcel of land acquired with financing provided by the mortgage. As a condition of the sale, the mortgage was fully repaid at closing. As of March 31, 2020, and June 30, 2019, the balance on the mortgage was $0. |
Note 6 - Mortgages Payable
Note 6 - Mortgages Payable | 9 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Note 6 - Mortgages Payable | Note 6– Mortgages Payable On September 4, 2019 the Company entered into a 90-day listing agreement for the sale of the Resort at Lake Selmac site location (formerly Smoke on the Water) for an offering price of $850,000, with expected 6% sales commission. This sales contract was extended in December 2019 for a further period under the same terms and conditions, expiring March 31, 2020. At June 30, 2019 the Company recorded an impairment change of $112,000 based on the expected sales price less costs of sale compared to the carrying value at June 30, 2019. The Company did not renew the listing agreement on March 31, 2020 and will continue to operate the property at this time. Management has reviewed the asset for impairment as at March 31, 2020 and does not believe further impairment is required at this time. Mortgage related to Resort at Lake Selmac as below: March 31, 2020 June 30, 2019 Liability held for sale on Resort at Lake Selmac $ 598,502 $ 605,359 In March 2017, the Company acquired the Lake Selmac Property. Upon closing, the Company entered into mortgage payable with the seller in the amount of $625,000 with a maturity date of March 6, 2022. The mortgage had an interest rate of 5% per annum covering the monthly payments of $3,355 for the initial 12 months, which increased to 6% per annum for the monthly payments of $3,747 for the following 48 months. Upon maturity, the remaining balance due on the note is required to be paid through a balloon payment. During the nine months ended March 31, 2020, the Company paid $6,856 to the principal of mortgage and $26,867 to the interests of the mortgage. As of March 31, 2020, and June 30, 2019, the balance on the mortgage was $598,502 and $605,359, respectively. The note is unsecured. As of March 31, 2020, the approximate future aggregate principal payments in respect of our current obligations were as follows: 2020 $ 6,072 2021 8,904 2022 583,526 $ 598,502 |
Note 7 - Property and Equipment
Note 7 - Property and Equipment, Net | 9 Months Ended |
Mar. 31, 2020 | |
Disclosure Text Block [Abstract] | |
Note 7 - Property and Equipment, Net | Note 7 – Property and Equipment, Net Property and improvements consisted of the following as of March 31, 2020 and June 30, 2019: March 31, 2020 June 30, 2019 Lake Selmac Property $ 768,782 $ 768,782 Leaseholder improvement 67,644 67,644 Furniture and Fixtures 25,892 25,892 862,318 862,318 Less: accumulated depreciation and impairment (16,398) (4,719) $ 845,920 $ 857,599 Depreciation expense (excluding impairment) amounted to $2,535 and $11,679, for the three and nine months ended March 31, 2020, respectively. Depreciation expense (excluding impairment) amounted to $1,304 and $2,273, for the three and nine months ended March 31, 2019, respectively. |
Note 8 - Promissory Note Receiv
Note 8 - Promissory Note Receivable | 9 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Note 8 - Promissory Note Receivable | Note 8 – Promissory Note Receivable On July 8, 2019, the Company entered into a non-binding letter of intent (the “LOI”) to acquire Encompass More Group, Inc. (“Encompass”), a Nevada corporation. In connection with the LOI, Encompass issued a promissory note (the “Note”) to the Company pursuant to a loan agreement (the “Loan Agreement”), dated July 22, 2019, by and between Encompass and the Company, in exchange for a loan of $100,000 (the “Loan”). Pursuant to the Loan Agreement, the proceeds of the Loan will be used by Encompass for working capital and general corporate purposes. The Note has a twelve-month term, an interest rate of 5.0%, and is payable in monthly installments of $2,000, with all remaining principal and interest due on the maturity date, unless paid earlier by Encompass. During the nine months ended March 31, 2020, the Company received $6,000 towards monthly installments. We recorded interest income of $1,657, and $4,723 during the three and nine months ended March 31, 2020. The Board of Directors have subsequently determined not to proceed with the acquisition as contemplated under the LOI. |
Note 9 - Accrued Liabilities
Note 9 - Accrued Liabilities | 9 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
Note 9 - Accrued Liabilities | Note 9 – Accrued Liabilities Accrued liabilities at March 31, 2020 and June 30, 2019 consist of the following: March 31, 2020 June 30, 2019 Accrued salaries and wages $ 60,967 $ 113,823 Accrued interest on mortgage 21,431 21,431 Accrued expenses 34,092 156,469 $ 116,490 $ 291,723 |
Note 10 - Capital Stock
Note 10 - Capital Stock | 9 Months Ended |
Mar. 31, 2020 | |
Disclosure Text Block [Abstract] | |
Note 10 - Capital Stock | Note 10 – Capital Stock On June 22, 2018, the Board of Directors of the Company approved the Recapitalization, which increased the Company’s authorized Common Stock from 100,000,000 to 175,000,000 shares, effective July 10, 2018. As of June 30, 2019, the Company's authorized stock consisted of 175,000,000 shares and 5,000,000 shares of Preferred Stock. As of August 29, 2019, the Company increased its authorized shares to 500,000,000 shares of Common Stock and 50,000,000 shares of Preferred Stock, respectively. Common Stock Share issuances during the nine months ended March 31,2020: During the three months ended September 30, 2019, the Company issued a total of 110,675,328 shares to acquire Bombshell Technologies, Inc. (See Note 4). During the nine months ended March 31, 2020, the Company issued 3,277,778 shares of unregistered Common Stock in respect to private placements for total gross proceeds of $200,000. In the period, the Company collected $150,000 from a prior period subscription receivable. During the nine months ended March 31, 2020, the Company issued a total of 3,175,948 shares to officers and directors as part of their respective executive and/or board compensation package. The Company valued those issuances at the closing price of the Company’s stock as traded on the OTCMarket on the date of grant and recorded stock-based compensation of $290,882. During the nine months ended March 31, 2020, the Company issued 1,288,984 fully vested unregistered shares of Common Stock to settle certain liabilities. The Company valued those issuances at the closing price of the Company’s Common Stock as traded on the OTCMarkets on the date of grant and recorded a $91,433 liability settlement and stock-based compensation of $23,230 on the statement of operations. On September 30, 2019, the Company retired 9,093,888 shares of the Company’s Common Stock. The Company valued those retired shares at the closing price of the Company’s Common Stock as traded on the OTCMarkets and recorded $869,380 as sale price of WCS and $40,000 as related to offset lease receivable. (See Note 5). Preferred Stock In 2015, the Company designated all 5,000,000 shares of its Preferred Stock as Series A Convertible Preferred Stock (the "Series A Preferred"), par value $0.001. The Series A Preferred shareholders voted together with the Common Stock as a single class and were entitled to receive all notices relating to voting that are required to be given to the holders of the Common Stock. The holders of shares of Series A Preferred were entitled to five votes per share and each share was convertible by the holder into five shares of Common Stock. All of the Series A Preferred shares were issued and converted into Common Stock in November 2015. Equity Incentive Plan In December 2015, the Company adopted the 2015 Equity Incentive Plan (the “Incentive Plan”) with a term of 10 years. The Incentive Plan allows for the issuance up to a maximum of 2 million shares of Common Stock, options exercisable into Common Stock of the Company or stock purchase rights exercisable into shares of Common Stock of the Company. The Incentive Plan is administered by the Board unless a separate delegation to an administrator is made by the Board. Options granted under the Incentive Plan carry a maximum term of 10 years, except to a grantee who is also a 10% beneficial owner at the time of grant, in which case the maximum term is 5 years. In addition, exercise prices of options granted must be within a certain percentage of the closing price on date of grant depending on the level of beneficial ownership of Common Stock of the Company by the grantee. All vesting conditions are set by the Board or a designated administrator. In December 2015, the Company filed a registration statement on Form S-8 covering all shares issued or issuable under the Incentive Plan. The Company has granted options to purchase 2 million shares under the Incentive Plan during April 2016, 1.5 million of which have been exercised and 0.5 million of which have vested and remain outstanding. There are no remaining shares available under the Incentive Plan. Stock Plan In December 2015, the Company adopted the 2015 Stock Plan (the “Stock Plan”). As a condition of adoption of the Stock Plan, the Company filed a registration statement on Form S-8 in December 2015 to register the shares issued under the Stock Plan. The Stock Plan allows for the issuance of up to a maximum of 2 million shares of Common Stock of the Company. The Stock Plan is administered by the Board unless a separate delegation to an administrator is made by the Board. The Stock Plan shall continue in effect until it is terminated by the Board or all shares are issued pursuant to the Stock Plan. The Company has not granted any shares under the Stock Plan. Options A summary of the change in stock purchase options outstanding for the periods ended March 31, 2020 and June 30, 2018 is as follows: Weighted Remaining Average Contractual Options Exercise Grant Date Life Outstanding Price Fair Value (Years) Balance – June 30, 2018 500,000 $0.40 $0.52 2.83 Options issued - - - - Options expired - - - - Options exercised - - - - Balance – June 30, 2019 500,000 $0.40 $0.52 1.83 Options issued Options expired Options exercised Balance – March 31, 2020 500,000 $0.40 $0.52 1.08 There were no unvested options outstanding during the years ended June 30, 2019 and 2018. Options outstanding had intrinsic value as of June 30, 2019 and 2018 of $nil. In the year ended June 30, 2016 the Company issued an option with no term attached. Of the original option, 500,000 remain outstanding. |
Note 11 - Related Party Transac
Note 11 - Related Party Transactions | 9 Months Ended |
Mar. 31, 2020 | |
Disclosure Text Block [Abstract] | |
Note 11 - Related Party Transactions | Note 11 – Related Party Transactions (1) Bombshell Technologies, Inc. Revenue The following table summarizes the revenue from the Company’s related parties: Three Months Ended Nine Months Ended March 31, 2020 Appreciation Financial, Corp (1) $ 195,065 $ 586,154 Mpower Group (1) 84,096 207,467 Public Employee Retirement Assistance (1) 47,261 187,189 Superior Performers Inc. (1) 180,916 649,830 Others 27,269 27,269 Grand Total $ 534,607 $ 1,657,909 (1) The Company had a significant concentration of revenue from these four customers totaling 95% and 98% of gross related party revenues during the three and nine months ended December 31, 2019, respectively. Related entities are controlled by over 5% shareholders of the Company and/or officer/directors of the Company. The following table summarizes the accounts receivable from the Company’s related parties: March 31, 2020 Appreciation Financial, LLC (1) $ 160,723 Mpower (1) (2) 207,467 Public Employee Retirement Assistance 19,605 Superior Performers Inc (1) 80,355 Total $ 468,150 (1) The Company had a significant concentration of accounts receivable from these three customers totaling 96% as at March 31, 2020. Related entities are controlled by over 5% shareholders of the Company and/or officer/directors of the Company. (2) On April 22, 2020, the Company entered into General Services Agreement with Mpower. For its Services, Bombshell shall receive a three percent (3%) fee from all commissions MPower receives through the Bombshell back office platform. Bombshell may take its fee before it distributes all remaining commissions to MPower. Costs of Goods and Commissions Fees The following table summarizes the Costs of Sales – related parties: Three Months Ended Nine Months Ended March 31, 2020 Ambiguous Holdings, LLC (1)(2) $ - $ 7,555 Trendsic Corporation Inc. (1)(2) - 178,799 Total $ - $ 186,354 (1) The Company had a significant concentration of total costs of goods sold from these two related party vendors totaling 0% and 21% of costs of goods sold in the three and nine months ended March 31, 2020, respectively. (2) Related entities are controlled by over 5% shareholders of the Company and/or officer/directors of the Company. The following table summarizes expense related to commission fees included as General and administrative – related parties: Three Months Ended Nine Months Ended March 31, 2020 Zeake, LLC (1) $ 56,819 $ 167,260 (1) Related entities are controlled by over 5% shareholders of the Company and/or officer/directors of the Company. The following table summarizes accounts payable to the Company’s related parties: March 31, 2020 Trendsic Corporation Inc. (1) $ 61,948 Zeake, LLC (1) 102,416 $ 164,364 (1) Related entities are controlled by over 5% shareholders of the Company and/or officer/directors of the Company. Advances As of March 31, 2020, and June 30, 2019, Bombshell Software LLC, a company controlled by an officer of our 100% owned subsidiary, Bombshell Technologies Inc. had made non-interest-bearing cash advances in the cumulative amount of $53,074 and $66,195, respectively to Bombshell Technologies Inc. (2) WCS Until its sale of WCS on September 30, 2019, the Company was leasing units in the building located at the Eagle Point Property. The building has approximately 15,000 square feet and is divided into four 1,500 square feet condo style grow rooms, 1,500 square feet of office space which is currently being offered for lease, and one 7,500 square foot grow facility. The four grow rooms are currently being offered for lease, and the grow facility is under lease to a company controlled by our former CEO and Chairman. The lease for the grow facility was entered into by the prior owner before the purchase of the Eagle Point Property by WCS in 2013. The lease term for the grow facility began once the tenant improvements were completed and the premises were occupied in fiscal 2017 and continues for a period of 36 months. The lease on the grow facility commenced in fiscal 2017. Revenue recorded in three and nine months ended March 31, 2020 included in discontinued operations to related parties which amounted to $14,400. Revenue recorded in three and nine months ended March 31, 2019 included in discontinued operations to related parties amounted to $14,400 and $28,800, respectively. (3) Grow Capital On July 1, 2018, Wayne Zallen resigned as the President and CEO of the Company and David Tobias resigned his position as a member of the Board. On the same day, Jonathan Bonnette was elected to the Board to fill the vacancy created by the resignation of David Tobias and was also appointed President and CEO of the Company. Mr. Zallen remained the Chairman of the Board and served as the CFO until the appointment of James Olson as Chairman of the Board and the appointment of Trevor Hall as CFO, respectively. Mr. Zallen’s employment contract was terminated upon his resignation as CEO, and the Company agreed to pay Mr. Zallen $2,500 per month for his continued services. In July 2018, the Company entered into an employment agreement with Mr. Bonnette. The employment agreement had an initial term of one year and includes compensation for the first year of $240,000 payable in unregistered shares of Common Stock at a valuation of $0.08 per share or 3,000,000 shares of Common Stock, which were issued in July 2018. The shares were valued at $390,000 upon grant, recorded to prepaid compensation and amortized ratably over the term of the agreement. During the three months ended September 30, 2018, the Company negotiated a sublease agreement to lease approximately 1,338 square feet of office space at a business center known as Green Valley Corporate Center South located in Henderson, Nevada (the “Henderson Property”), effective October 19, 2018, for use as the Company’s new headquarters. The lease has a term of 123 months, an abatement of the first four months of rent during which time the Company would complete certain required leasehold improvements and escalating base monthly rent per square foot ranging between $2.00 to $3.00 per square foot. Material lease hold improvements are being amortized over the term of the lease. The Company commenced occupation of the premises in February 2019. Appreciation, LLC holds the master lease from which the Company derives its sublease for its headquarters. Terry Kennedy, the President of Appreciation, provides consulting services to the Company and is also a beneficial owner of more than 10% of the Company’s Common Stock. Total rent charged under this sublease during the nine months ended March 31, 2020 was $29,419 of which $18,732 has been paid. In July 2018, the Company entered into a consulting agreement with Mr. Kennedy with a one-year term. Mr. Kennedy received a fixed fee of $100,000 for his services which was payable in unregistered shares of Common Stock valued at $0.10 per share for the first $50,000 on July 1, 2018 and at $0.034 for the second $50,000 payable on January 1, 2019 for a total of 1,970,805 unregistered shares of Common Stock, all of which have been issued. The shares payable on January 1, 2019 were valued at $394,161 and are being expensed in the fiscal year ended June 30, 2019. On January 28, 2019, the Company entered into a consulting agreement with Trevor Hall and appointed Mr. Hall to serve as a part-time CFO of the Company through December 31, 2019. Mr. Hall succeeded Wayne Zallen as CFO, who resigned from the position in connection with Mr. Hall’s appointment. Pursuant to the consulting agreement, Mr. Hall received $63,000 in compensation, payable as 1,000,000 shares of Common Stock of unregistered Common Stock of the Company and will devote enough of his time to the Company as is reasonably necessary to meet the needs of the Company during the term. The shares were issued on January 29, 2019. On April 29, 2019, Mr. Wayne Zallen resigned as a member of the Board of Directors and Chairman. Concurrently the board appointed James Olson to fill the Board vacancy and as Chairman of the Board. Mr. Olson will also be entitled to compensation for his service on the Board of Directors in the amount of $10,000 per quarter paid in the form of fully vested unregistered shares of the Company’s Common Stock at a discount of 35% to market on the first day of each calendar quarter. On April 29, 2019 Mr. Olson was issued a total of 108,853 shares in connection with his appointment at the discount to market described above. On May 15, 2019, the Company entered into Fee Agreements (collectively, the “Fee Agreements”) with each of (i) Jonathan Bonnette, (ii) Carl Sanko, a director and the Secretary of the Company, and (iii) Terry Kennedy. Under the Fee Agreements, on May 15, 2019, each of Mr. Bonnette, Mr. Sanko, and Mr. Kennedy were issued unregistered shares of Common Stock for services provided to the Company. Pursuant to the Fee Agreements (i) Mr. Bonnette received a fixed fee of $320,000 for his service as Chief Executive Officer of the Company and for outside business management and consulting services, which was paid through the issuance of 4,124,597 unregistered shares of Common Stock; (ii) Mr. Sanko received a fixed fee of $210,000 for his services as Secretary of the Company and for outside business management and consulting services, which was paid through the issuance of 2,706,767 unregistered shares of Common Stock, and (iii) Mr. Kennedy received a fixed fee of $160,000 for outside business consulting services, which was paid through the issuance of 2,062,299 unregistered shares of Common Stock. Under the Fee Agreements, the shares of Common Stock were issued at a value of $0.07758 per share. The value of the Common Stock was set by the Company’s board of directors and was equal to the average of the three lowest closing prices of the Common Stock in the 30 trading days before May 15, 2019 after applying a 30% discount. The Fee Agreements each have a term of one year. The shares of Common Stock issued under the Fee Agreements were valued at $1,511,034 upon grant based upon the closing price of the Company’s Common Stock as traded on the OTCMarkets on the date of grant, recorded to prepaid compensation and amortized ratably over the term of the agreement. In fiscal 2018, the Company was notified by its primary banks that these banks would no longer accept the Company as a client for its banking services. Because the Company rents its properties to those who engage in a federal crime under the Controlled Substances Act, most banks subject to any federal oversight (the Office of the Comptroller of the Currency or any of the Federal Reserve Bank’s of the United States) have declined to do business with any entity that is related in any way to cannabis operations. The Company’s management and directors have as of June 30, 2018 transferred the Company’s cash and its banking operations to an entity owned and controlled by them. The Company has treated the cash transferred as amounts due from this related entity and the cash expended from these accounts on behalf of the Company as reductions of the amounts due from the related entity. As of March 31, 2020, and June 30, 2019, the amount held in cash by the related entity and reported as a current asset as due from related party was $0 and $16,854. On February 12, 2020, the Company entered into a consulting agreement with Trevor Hall and appointed Mr. Hall to serve as an interim CFO of the Company beginning January 1, 2020 through December 31, 2020. Pursuant to the consulting agreement, a fixed fee of One Million Two Hundred Thousand (1,200,000) shares of the Company’s unregistered restricted common stock for his providing chief financial officer services. The shares are to be issued at a rate of Three Hundred Thousand (300,000) shares per quarter. The first installment, covering the period January 1 to March 31, 2020, was issued on March 3, 2020 and vest immediately upon issuance. During the nine months ended March 31, 2020 certain officers and directors either as individuals or through companies controlled by them subscribed for shares of common stock for gross proceeds of $150,000 at $0.05 per share for a total of 3,000,000 shares of unregistered Common Stock. |
Note 12 - Leases
Note 12 - Leases | 9 Months Ended |
Mar. 31, 2020 | |
Disclosure Text Block [Abstract] | |
Note 12 - Leases | Note 12 - Leases We have operating leases for corporate offices. During the three months ended September 30, 2018, the Company negotiated a sublease agreement with Appreciation, LLC effective October 19, 2018 to lease the Henderson Property for use as the Company’s new headquarters. The lease has a term of 123 months, an abatement of the first four months of rent during which time the Company would complete certain required leasehold improvements and escalating base monthly rent per square foot ranging between $2.00 to $3.00 per square foot. The Company commenced occupation of the premises in February 2019. Future minimum lease payments under non-cancellable leases as of March 31, 2020 as presented in accordance with ASC 842 were as follows: 2020 $ 28,821 2021 39,457 2022 40,622 2023 41,906 2024 43,190 Remaining periods 185,488 Total future minimum lease payments 379,484 Less: imputed interest (97,040) Total 282,444 Current portion of operating lease 4,774 Long term of operating lease $ 277,670 |
Note 13 - Segment Reporting
Note 13 - Segment Reporting | 9 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Note 13 - Segment Reporting | Note 13 – Segment Reporting The Company's operations are classified into two reportable segments that provide different products or services. Separate management of each segment is required because each business unit is subject to different marketing, operational, and growth and technology development strategies. The recreational vacation site rentals segment operated by Resort at Lake Selmac, Inc. derives its revenue from rental of RV sites and campsites at its owned location on Lake Selmac in Oregon, US. The Fintech segment operated by Bombshell Technologies based in Nevada and Louisiana derives its income from proprietary software which delivers customized back office compliance, sophisticated multi-pay commission processing, and a unique new client application submission system, along with digital engagement marketing services centric to financial services. We derive revenue from both operating segments. There are no inter-segment sales. The costs associated with management overhead for Grow Capital are dedicated to our key operating segment in the FinTech industry, Bombshell Technologies, and all corporate overhead has been included in this segment disclosure as a result. Three and nine months ended March 31, 2020: Three Months Ended Nine Months Ended March 31, March 31, 2020 2019 2020 2019 Revenues by segment: Bombshell Technologies and corporate $ 565,314 $ 298,072 $ 1,800,739 $ 377,599 Resort at Lake Selmac - 37,096 126,512 168,153 Revenues $ 565,314 $ 335,168 $ 1,927,251 $ 545,752 Segment profit (loss) Bombshell Technologies and corporate $ (585,886) $ (223,503) $ (1,703,146) $ (713,704) Resort at Lake Selmac (20,213) (16,255) (9,583) (1,204) Total segment profit (606,099) (239,758) (1,712,729) (714,908) As of March 31, 2020 2019 Assets by segment Bombshell Technologies and corporate * $ 1,445,031 $ 2,899,923 Resort at Lake Selmac 795,394 913,799 Total assets $ 2,240,425 $ 3,813,722 *Includes assets held for sale |
Note 14 - Other Events
Note 14 - Other Events | 9 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Note 14 - Other Events | Note 14 – Other Events On December 13, 2019, Trendsic Corporation, Inc. (“Trendsic”), a related party entity which is 49% controlled by Joel A. Bonnette (formerly CEO of our wholly-owned subsidiary Bombshell Technologies, Inc.)filed a lawsuit in the 19th Judicial District Court in East Baton Rouge Parish, Louisiana against Joel A. Bonnette, Jared Bonnette, Bombshell Software, LLC and Bombshell Technologies, Inc. The plaintiff is disputing the ownership of certain intellectual property of Bombshell Technologies, Inc. and alleging misappropriation of trade secrets of Trendsic. Trendsic is seeking an unspecified amount of damages in excess of $75,000 and treble damages under the Louisiana Uniform Trade Secrets Act, as well as injunctive relief. The Company believes the claims by Trendsic are without merit and is vigorously defending against such claims. At the time of this report, the Company is unable to determine or quantify potential losses in respect of the aforementioned action. |
Note 15 - Subsequent Events
Note 15 - Subsequent Events | 9 Months Ended |
Mar. 31, 2020 | |
Disclosure Text Block [Abstract] | |
Note 15 - Subsequent Events | Note 15- Subsequent Events On April 1, 2020, Jonathan Bonnette, who has been the President and Chief Executive Officer of Grow since July 1, 2018, transitioned out of his role as President and Chief Executive Officer and become the Company’s Chief Technology Officer and the Chief Executive Officer of the Company’s subsidiary, Bombshell Technologies. Mr. Terry Kennedy was appointed to succeed Mr. Bonnette as the President and Chief Executive Officer of the Company, effective April 1, 2020. Mr. Kennedy will serve as the President and Chief Executive Officer until his successor is appointed by the Board, or until his earlier resignation, removal or death. In connection with Mr. Kennedy’s appointment, the Company and Mr. Kennedy entered into an executive compensation agreement (the “Compensation Agreement”) with an effective date of April 1, 2020. Pursuant to the Compensation Agreement, Mr. Kennedy will have the duties and responsibilities as are commensurate with the positions of President and Chief Executive Officer, as reasonably and lawfully directed by the Board. Mr. Kennedy will continue to provide services to clients of Appreciation Financial, a business Mr. Kennedy founded and owns, as well as to otherwise be individually employed by another entity or entities. Mr. Kennedy will, however, be required to devote his time and apply his attention, skill and best efforts to the faithful performance of his duties as President and Chief Executive Officer of the Company in a professional manner. The Compensation Agreement governs the terms and conditions regarding Mr. Kennedy’s compensation for the three-month period beginning on April 1, 2020, and ending on June 30, 2020, and may be terminated “for cause” only. Pursuant to the Compensation Agreement, following his appointment as President and Chief Executive Officer, Mr. Kennedy was issued one million (1,000,000) unregistered, restricted shares of the Company’s common stock on April 20, 2020 as compensation for the three-month period ending June 30, 2020. These shares were valued at the closing price of the Company’s Common Stock as traded on the OTCMarkets on the date of grant. The shares of common stock issued are immediately and fully vested, and deemed to be fully earned, upon their issuance. During the initial three-month term of the Compensation Agreement, the Board and Mr. Kennedy have agreed to put forth their best efforts to negotiate and consummate a more permanent executive compensation or employment agreement, anticipated to become effective July 1, 2020. If such a permanent executive compensation/employment agreement is not consummated prior to July 1, 2020, the Compensation Agreement will automatically renew for one additional three-month period beginning on July 1, 2020, with Mr. Kennedy entitled to receive up to an additional one million (1,000,000) unregistered, restricted shares of the Company’s common stock, with the actual number of shares being prorated for the portion of the extended period actually served until the more permanent executive compensation/employment agreement is consummated. On April 2, 2020 the Company issued 2,086,678 fully vested unregistered shares of Common Stock to officers and directors as part of their respective board compensation package. On April 3, 2020 the Company issued a further 300,000 fully vested unregistered shares of Common Stock to the Company’s CFO as compensation under the consulting contract for his services for the period April 1, 2020 through June 30, 2020. The Company valued those issuances at the closing price of the Company’s Common Stock as traded on the OTCMarkets on the date of grant. Subsequent to the quarter ended March 31, 2020 the Company determined not to renew its listing for the sale of the Resort at Lake Selmac. As a result of the COVID-19 pandemic, the scheduled opening date of April 1, 2020 for the resort property was postponed indefinitely and the resort remains closed as at the date of this report. As a result of the current decline in real estate transactions in the United States as a result of the pandemic, and the closure of the resort, the Company will review the sale of this property when appropriate at a future date. On May 13, 2020 the Company’s Board of Directors approved a 1 for 20 reverse split whereby shareholders shall receive one (1) post reverse split share of Common Stock for each twenty (20) pre-split shares of Common Stock. Further the Company shall pay cash to shareholders who are left with only a fractional share and shall round up any other partial shares to the nearest whole share. The Company will be required to file a Schedule 14C information statement with the Securities and Exchange Commission and will require majority shareholder approval. The Board of Directors has determined that the close of business on June 8, 2020, will be the record date (“Record Date”) for the stockholders entitled to notice of the actions authorizing the reverse split. The above noted corporate action remains subject to approval from |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2020 | |
Policy Text Block [Abstract] | |
Basis of Presentation: | Basis of Presentation The interim unaudited financial information has been prepared and presented in conformity with accounting principles generally accepted in the United States applicable to interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. The interim financial information has been prepared on a condensed basis, such that certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted in accordance with rules and regulations of the Securities and Exchange Commission and should be read in conjunction with the Annual Financial Statements included in the Form 10-K filed on October 15, 2019 at www.sec.gov. These interim financial statements include all adjustments that, in the opinion of management, are necessary in order to make the financial statements not misleading. |
Consolidation | Consolidation These consolidated financial statements include the accounts of Grow Capital, Inc. and its wholly owned subsidiaries, WCS (up until disposal in September 2019), Bombshell Technologies Inc. and Resort at Lake Selmac, Inc, as of March 31, 2020. All significant intercompany accounting transactions have been eliminated as a result of consolidation. In addition to consolidation for the nine months ended March 31, 2020 financial results for the nine months ended March 31, 2019 are “combined” with respect to the operations of Bombshell Technologies, Inc. under the requirements of ASC 850-50-45, which results impact the statements of profit and loss and statements of cash flows to include operations of Bombshell Technologies Inc. as though it had been acquired on inception. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We believe that it is at least reasonably possible that the estimates of amounts realizable upon our properties currently for sale at the date of the financial statements will change in the near term due to one or more future confirming events and the effect of the change would be material to the financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents For financial accounting purposes, cash and cash equivalents are considered to be all highly liquid investments with a maturity of three (3) months or less at the time of purchase. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash deposits. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At March 31, 2020 and June 30, 2019, the Company had $0 and $212,985 in excess of the FDIC insured limit, respectively. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts The Company determines the allowance for doubtful accounts by considering a number of factors, including the length of time the accounts receivable are beyond the contractual payment terms, previous loss history, and the customer’s current ability to pay its obligation. When the Company becomes aware of a specific customer’s inability to meet its financial obligations to the Company, the Company records a charge to the allowance to reduce the customer’s related accounts. During the period to March 31, 2020, the allowance for doubtful accounts totaled approximately $9,243. |
Leases, Lease Receivables and deferred rent | Leases, Lease Receivables and deferred rent Upon adoption of ASU 2016-02, "Leases," in the first quarter of fiscal year ended June 30, 2020, the Company elected not to recognize leases with a term less than one year on its balance sheet. Operating lease right-of-use (ROU) assets and their corresponding lease liabilities are recorded based on the present value of lease payments over the expected remaining lease term. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rates, which are the rates incurred to borrow on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. Lease receivables are recognized when rents are due, and for the straight-line adjustment to rents over the term of the lease less an allowance for expected uncollectible amounts. Inherent in the assessment of the allowance for doubtful accounts are certain judgments and estimates including, among others, the customer's willingness or ability to pay, the Company's compliance with lease terms, the effect of general economic conditions and the ongoing relationship with the customer. Accounts with outstanding balances longer than the payment terms are considered past due. We do not charge interest on past due balances. The Company writes off lease receivables when it determines that they have become uncollectible after all reasonable collection efforts have been made. If we record bad debt expense, the amount is reflected as a component of operating expenses in the statements of operations. |
Intangible Assets | Intangible Assets The Company’s intangible assets consist of intellectual property. |
Investment In and Valuation of Real Estate Assets | Investment In and Valuation of Real Estate Assets Real estate assets are stated at cost, less accumulated depreciation and amortization. Amounts capitalized to real estate assets consist of the cost of acquisition (excluding acquisition related expenses), construction costs, and mortgage interest during the period the facilities are under construction and prior to readiness for occupancy, and any tenant improvements, major improvements and betterments that extend the useful life of the real estate assets and leasing costs. All repairs and maintenance are expensed as incurred. The Company is required to make subjective assessments as to the useful lives of its depreciable assets. The Company considers the period of future benefit of each respective asset to determine the appropriate useful life of the assets. Real estate assets, other than land, are depreciated on a straight-line basis over the estimated useful life of the asset. The estimated useful lives of the Company's real estate assets by class are generally as follows: Land Indefinite Buildings 40 years Tenant improvements Lesser of useful life or lease term Intangible lease assets Lease term |
Impairment of long-lived assets | Impairment of long-lived assets The Company monitors its long-lived assets and finite-lived intangibles for indicators of impairment. If such indicators are present, the Company assesses the recoverability of affected assets by determining whether the carrying value of such assets is less than the sum of the undiscounted future cash flows of the assets. If such assets are found not to be recoverable, the Company measures the amount of such impairment by comparing the carrying value of the assets to the fair value of the assets, with the fair value generally determined based on the present value of the expected future cash flows associated with the assets (See Note 4). |
Share-based compensation | Share-based compensation The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant date fair value of the award. Unregistered stock awards are measured based on the fair market values of the underlying stock on the dates of grant. For service type awards, share-based compensation expense is recognized on a straight-line basis over the period during which the employee is required to provide service in exchange for the entire award. For awards that vest or begin vesting upon achievement of a performance condition, the Company estimates the likelihood of satisfaction of the performance condition and recognizes compensation expense when achievement of the performance condition is deemed probable using an accelerated attribution model. The Company capitalizes the cost of issuance grants that cover a period of employment or consulting agreement under contract or performance obligation related to future performance and amortizes the compensation related to these contracts ratably over the period of employment or at percentage of completion or other appropriate method for future performance grants. There are no issuance grants outstanding with a performance term longer than one year at March 31, 2020 and June 30, 2019. Prepaid expenses for the nine months ended March 31, 2020 and fiscal year ended June 30, 2019 include unamortized costs of issuance grants under employment and consulting contracts totalling $186,293 and $1,380,459, respectively. |
Fair Value of Financial Instruments: | Fair Value of Financial Instruments ASC 820, Fair Value Measurements, defines fair value as the price at which an asset could be exchanged or a liability transferred in an orderly transaction between knowledgeable, willing parties in the principal or most advantageous market for the asset or liability. Where available, fair value is based on observable market prices or derived from such prices. Where observable prices or inputs are not available, valuation models are applied which may involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity. |
Income Taxes | Income taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss and credit carryforwards. Deferred tax assets and liabilities are measured at rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statement of operations in the period that includes the enactment date. A valuation allowance is recorded when it is not more likely than not that all or a portion of the net deferred tax assets will be realized. In the quarter ended September 30, 2019, the Company issued a significant number of new shares in its acquisition of Bombshell Technologies, Inc. (see Note 4) and the cancellation of then outstanding shares upon the sale of WCS Enterprises, LLC (see Note 5). The effect of these issuances and cancellations is that most likely, the Company experienced the requisite change of control as promulgated under the US Internal Revenue Code section 382. The effect of this will be that going forward, the ability of the Company to utilize the US Federal net operating loss carryforwards of Grow Capital, Inc. from prior to these transactions will be limited in its usage. In order to determine the specific effect, the Company must perform the computations required under the Internal Revenue Code, which have not yet been performed. The Company expects it will perform the required computations once its evident that profits are likely. |
Net (loss) income per share | Net (loss) income per share Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of shares of Common Stock outstanding for the period and contains no dilutive securities. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity. For the fiscal year ended June 30, 2019 and 2018, all potentially dilutive securities are anti-dilutive due to the Company's losses from operations. All dilutive common stock equivalents are reflected in our earnings (loss) per share calculations. Anti-dilutive common stock equivalents are not included in our earnings (loss) per share calculations. The following table sets forth the number of potential shares outstanding as of March 31, 2020 and June 30, 2019: Options 500,000 Total potential shares 500,000 |
Reclassification | Reclassification Certain prior period balances have been reclassified to conform to the current period presentation in the Company’s consolidated financial statements and the accompanying notes. |
Recent accounting pronouncements | Recent accounting pronouncements Management has considered all recent accounting pronouncements issued and their potential effect on our financial statements. The Company's management believes that these recent pronouncements will not have a material effect on the Company’s financial statements. |
Note 2 - Summary of Significa_3
Note 2 - Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Table Text Block Supplement [Abstract] | |
Schedule of Estimated useful lives assets | The estimated useful lives of the Company's real estate assets by class are generally as follows: Land Indefinite Buildings 40 years Tenant improvements Lesser of useful life or lease term Intangible lease assets Lease term |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table sets forth the number of potential shares outstanding as of March 31, 2020 and June 30, 2019: Options 500,000 Total potential shares 500,000 |
Note 4 - Merger (Tables)
Note 4 - Merger (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of assets acquired and liabilities assumed | The following table provides information as of July 23, 2019 of the assets acquired and the liabilities assumed in the merger: Assets Cash $ 43,975 Accounts receivable 36,079 Accounts receivable, related parties 294,995 Intangibles and other assets 200 Total Assets $ 375,249 Liabilities Accounts payable and accrued liabilities $ 60,605 Accounts payable and accrued liabilities, related parties 118,912 Advances, related parties 66,195 Unearned revenue 9,070 Unearned revenue, related parties 7,500 Customer deposits, related parties - Deferred income tax liabilities 31,800 Total liabilities 294,082 Net Assets $ 81,167 Consideration: 110,675,328 shares 110,675 Additional paid in capital $ (29,508 ) |
Note 5 - Assets Held for Sale (
Note 5 - Assets Held for Sale (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Disclosure Text Block [Abstract] | |
Schedule of Discounted Operations | The Results of the Discounted Operations are as follows: Three Months Ended Nine Months Ended March 31, March 31, 2020 2019 2020 2019 Net revenues $ - $ 10,800 $ 14,400 $ 79,931 Operating expenses General and administrative - 19,573 7,964 35,861 Depreciation, amortization and impairment - 6,990 6,990 20,970 Total operating expenses - 26,563 14,954 56,831 Income (Loss) from operations - (15,763) (554) 23,100 Gain on sale 492,439 (5,412) Interest expense - - - (13,129) Income (loss) from discontinued operations $ - $ (15,763) $ 491,885 $ 4,559 |
Assets and liabilities disposed | Assets and liabilities disposed of are as follows September 30, 2019 Assets: Lease receivable $ 40,804 Prepaid expenses 5,152 Property, plant and equipment, net 809,281 Other assets 6,150 Total Assets $ 861,387 Liabilities: Accrued liabilities 367,367 Other liabilities 79,100 Total Liabilities 446,467 Net Assets $ 414,920 Consideration: Purchaser return 9,093,888 shares of common stock, FMV at $0.10 $ 909,389 Payment on certain items during closing (2,030) Total consideration $ 907,359 Gain on sale of WCS $ 492,439 |
Schedule of assets and liabilities held for sale | Groups of assets and liabilities held for sale as of March 31, 2020 and June 30, 2019 March 31, June 30, 2020 2019 ASSETS: Lease receivable $ - $ 26,403 Prepaid expenses - 10,299 Property, plant and equipment, net - 816,271 Other assets - 6,150 TOTAL ASSETS $ - $ 859,123 LIABILITIES: Accounts payable and accrued liabilities $ - $ 367,504 Other liabilities - 79,100 TOTAL LIABILITIES - 446,604 NET ASSETS $ - $ 412,519 |
Schedule of Mortgage related to assets held for sale | Mortgages Payable related to assets held for sale on Pioneer Property and Eagle Mountain Property March 31, 2020 June 30, 2019 Liability held for sale – Mortgages on Eagle Mountain Property $ - $ - Liability held for sale – Mortgage on Pioneer Property - - $ - $ - |
Note 6 - Mortgages Payable (Tab
Note 6 - Mortgages Payable (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Schedule of Mortgage related to assets held for sale | Mortgages Payable related to assets held for sale on Pioneer Property and Eagle Mountain Property March 31, 2020 June 30, 2019 Liability held for sale – Mortgages on Eagle Mountain Property $ - $ - Liability held for sale – Mortgage on Pioneer Property - - $ - $ - |
Schedule of future aggregate principal payments | As of March 31, 2020, the approximate future aggregate principal payments in respect of our current obligations were as follows: 2020 $ 6,072 2021 8,904 2022 583,526 $ 598,502 |
Smoke on the Water [Member] | |
Schedule of Mortgage related to assets held for sale | Mortgage related to Resort at Lake Selmac as below: March 31, 2020 June 30, 2019 Liability held for sale on Resort at Lake Selmac $ 598,502 $ 605,359 |
Note 7 - Property and Equipme_2
Note 7 - Property and Equipment, Net (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Table Text Block Supplement [Abstract] | |
Schedule of Property and Improvements | Property and improvements consisted of the following as of March 31, 2020 and June 30, 2019: March 31, 2020 June 30, 2019 Lake Selmac Property $ 768,782 $ 768,782 Leaseholder improvement 67,644 67,644 Furniture and Fixtures 25,892 25,892 862,318 862,318 Less: accumulated depreciation and impairment (16,398) (4,719) $ 845,920 $ 857,599 |
Note 9 - Accrued Liabilities (T
Note 9 - Accrued Liabilities (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities at March 31, 2020 and June 30, 2019 consist of the following: March 31, 2020 June 30, 2019 Accrued salaries and wages $ 60,967 $ 113,823 Accrued interest on mortgage 21,431 21,431 Accrued expenses 34,092 156,469 $ 116,490 $ 291,723 |
Note 10 - Capital Stock (Tables
Note 10 - Capital Stock (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Disclosure Text Block [Abstract] | |
Summary of change in stock purchase options outstanding | A summary of the change in stock purchase options outstanding for the periods ended March 31, 2020 and June 30, 2018 is as follows: Weighted Remaining Average Contractual Options Exercise Grant Date Life Outstanding Price Fair Value (Years) Balance – June 30, 2018 500,000 $0.40 $0.52 2.83 Options issued - - - - Options expired - - - - Options exercised - - - - Balance – June 30, 2019 500,000 $0.40 $0.52 1.83 Options issued Options expired Options exercised Balance – March 31, 2020 500,000 $0.40 $0.52 1.08 |
Note 11 - Related Party Trans_2
Note 11 - Related Party Transactions (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Disclosure Text Block [Abstract] | |
Summary of revenue from related parties | The following table summarizes the revenue from the Company’s related parties: Three Months Ended Nine Months Ended March 31, 2020 Appreciation Financial, Corp (1) $ 195,065 $ 586,154 Mpower Group (1) 84,096 207,467 Public Employee Retirement Assistance (1) 47,261 187,189 Superior Performers Inc. (1) 180,916 649,830 Others 27,269 27,269 Grand Total $ 534,607 $ 1,657,909 (1) The Company had a significant concentration of revenue from these four customers totaling 95% and 98% of gross related party revenues during the three and nine months ended December 31, 2019, respectively. Related entities are controlled by over 5% shareholders of the Company and/or officer/directors of the Company. |
Summary of accounts receivable from related parties | The following table summarizes the accounts receivable from the Company’s related parties: March 31, 2020 Appreciation Financial, LLC (1) $ 160,723 Mpower (1) (2) 207,467 Public Employee Retirement Assistance 19,605 Superior Performers Inc (1) 80,355 Total $ 468,150 (1) The Company had a significant concentration of accounts receivable from these three customers totaling 96% as at March 31, 2020. Related entities are controlled by over 5% shareholders of the Company and/or officer/directors of the Company. (2) On April 22, 2020, the Company entered into General Services Agreement with Mpower. For its Services, Bombshell shall receive a three percent (3%) fee from all commissions MPower receives through the Bombshell back office platform. Bombshell may take its fee before it distributes all remaining commissions to MPower. |
Summary of costs of sales from related parties | The following table summarizes the Costs of Sales – related parties: Three Months Ended Nine Months Ended March 31, 2020 Ambiguous Holdings, LLC (1)(2) $ - $ 7,555 Trendsic Corporation Inc. (1)(2) - 178,799 Total $ - $ 186,354 (1) The Company had a significant concentration of total costs of goods sold from these two related party vendors totaling 0% and 21% of costs of goods sold in the three and nine months ended March 31, 2020, respectively. (2) Related entities are controlled by over 5% shareholders of the Company and/or officer/directors of the Company. |
Summary General and administrative related parties | The following table summarizes expense related to commission fees included as General and administrative – related parties: Three Months Ended Nine Months Ended March 31, 2020 Zeake, LLC (1) $ 56,819 $ 167,260 (1) Related entities are controlled by over 5% shareholders of the Company and/or officer/directors of the Company. |
Summary of accounts payable to related parties | The following table summarizes accounts payable to the Company’s related parties: March 31, 2020 Trendsic Corporation Inc. (1) $ 61,948 Zeake, LLC (1) 102,416 $ 164,364 (1) Related entities are controlled by over 5% shareholders of the Company and/or officer/directors of the Company. |
Note 11 - Leases (Tables)
Note 11 - Leases (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Disclosure Text Block [Abstract] | |
Schedule of future aggregate minimum lease payments | Future minimum lease payments under non-cancellable leases as of March 31, 2020 as presented in accordance with ASC 842 were as follows: 2020 $ 28,821 2021 39,457 2022 40,622 2023 41,906 2024 43,190 Remaining periods 185,488 Total future minimum lease payments 379,484 Less: imputed interest (97,040) Total 282,444 Current portion of operating lease 4,774 Long term of operating lease $ 277,670 |
Note 13 - Segment Reporting (Ta
Note 13 - Segment Reporting (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Three and nine months ended March 31, 2020: Three Months Ended Nine Months Ended March 31, March 31, 2020 2019 2020 2019 Revenues by segment: Bombshell Technologies and corporate $ 565,314 $ 298,072 $ 1,800,739 $ 377,599 Resort at Lake Selmac - 37,096 126,512 168,153 Revenues $ 565,314 $ 335,168 $ 1,927,251 $ 545,752 Segment profit (loss) Bombshell Technologies and corporate $ (585,886) $ (223,503) $ (1,703,146) $ (713,704) Resort at Lake Selmac (20,213) (16,255) (9,583) (1,204) Total segment profit (606,099) (239,758) (1,712,729) (714,908) As of March 31, 2020 2019 Assets by segment Bombshell Technologies and corporate * $ 1,445,031 $ 2,899,923 Resort at Lake Selmac 795,394 913,799 Total assets $ 2,240,425 $ 3,813,722 *Includes assets held for sale |
Note 1 - Organization and Des_2
Note 1 - Organization and Description of Business (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Aug. 29, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 22, 2018 | |
Date of Incorporation | Oct. 22, 1999 | |||||||
Increase in authorised capital | 550,000,000 | 180,000,000 | ||||||
Common Stock, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | 175,000,000 | 175,000,000 | |||
Preferred Stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | 5,000,000 | 5,000,000 | |||
Common Stock, par or stated value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Preferred Stock, par or stated value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Net loss | $ (613,379) | $ (271,146) | $ (1,243,038) | $ (743,549) | ||||
Gross Profit | 272,566 | 217,291 | 988,072 | 323,659 | ||||
Working capital defcit | 127,000 | |||||||
Cash on hand | $ 156,377 | $ 177,450 | 156,377 | $ 177,450 | $ 483,430 | $ 13,891 | ||
Bombshell Technologies | ||||||||
Gross Profit | $ 900,000 | |||||||
Bombshell Technologies | ||||||||
Date of Incorporation | Jun. 24, 2019 | |||||||
Date of Acquisition | Jul. 23, 2019 | |||||||
WCS Enterprises, LLC | ||||||||
Date of Incorporation | Sep. 9, 2013 | |||||||
Smoke on the Water [Member] | ||||||||
Date of Incorporation | Oct. 21, 2016 |
Note 2 - Summary of Significa_4
Note 2 - Summary of Significant Accounting Policies : Concentration of Credit Risk (Details) - USD ($) | Mar. 31, 2020 | Jun. 30, 2019 |
Disclosure Text Block [Abstract] | ||
FDIC insured limit | $ 0 | $ 212,985 |
Note 2 - Summary of Significa_5
Note 2 - Summary of Significant Accounting Policies : Accounts Receivable and Allowance for Doubtful Accounts (Details) | Mar. 31, 2020USD ($) |
Disclosure Text Block [Abstract] | |
Allowance for doubtful accounts | $ 9,243 |
Note 2 - Summary of Significa_6
Note 2 - Summary of Significant Accounting Policies: Investment (Details) | 9 Months Ended |
Mar. 31, 2019 | |
Land {1} | |
Property, Plant and Equipment, Estimated Useful Lives | Indefinite |
Building | |
Property, Plant and Equipment, Estimated Useful Lives | 40 years |
Leaseholds and Leasehold Improvements | |
Property, Plant and Equipment, Estimated Useful Lives | Lesser of useful life or lease term |
Intangible Lease Assets | |
Property, Plant and Equipment, Estimated Useful Lives | Lease term |
Note 2 - Summary of Significa_7
Note 2 - Summary of Significant Accounting Policies : Share-based compensation (Details) - USD ($) | Mar. 31, 2020 | Jun. 30, 2019 |
Disclosure Text Block [Abstract] | ||
Unamortized costs of issuance grants | $ 186,293 | $ 1,380,459 |
Note 2 - Summary of Significa_8
Note 2 - Summary of Significant Accounting Policies: Net (loss) income per share (Details) | 9 Months Ended |
Mar. 31, 2020shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 500,000 |
Employee Stock Option [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 500,000 |
Note 4 - Merger (Details)
Note 4 - Merger (Details) | 1 Months Ended |
Jul. 23, 2019shares | |
Number of common stock aquisition | 12,256,405 |
Consideration Shares | |
Number of common stock aquisition | 110,675,328 |
Closing Shares | |
Number of common stock aquisition | 33,000,000 |
Secondary Shares | |
Number of common stock aquisition | 77,675,328 |
Earn-out Shares | |
Number of common stock aquisition | 36,769,215 |
Note 4 - Merger _ Assets acquir
Note 4 - Merger : Assets acquired and liabilities assumed (Details) - Bombshell | 1 Months Ended |
Jul. 23, 2019USD ($) | |
Assets | |
Cash | $ 43,975 |
Accounts receivable | 36,079 |
Accounts receivable, related parties | 294,995 |
Intangibles and other assets | 200 |
Total Assets | 375,249 |
Liabilities | |
Accounts payable and accrued liabilities | 60,605 |
Accounts payable and accrued liabilities, related parties | 118,912 |
Advances, related parties | 66,195 |
Unearned revenue | 9,070 |
Unearned revenue, related parties | 7,500 |
Customer deposits, related parties | 0 |
Deferred income tax liabilities | 31,800 |
Total liabilities | 294,082 |
Net Assets | 81,167 |
Consideration: 110,675,328 shares | 110,675 |
Additional paid in capital | $ (29,508) |
Note 5 - Assets Held for Sale_2
Note 5 - Assets Held for Sale (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Oct. 31, 2017 | Jun. 30, 2017 | Apr. 30, 2016 | Jun. 30, 2013 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2014 | |
Payments to Acquire Property, Plant, and Equipment | $ 0 | $ 6,160 | |||||||||
Membership Interest Purchase Agreement [Member] | Zallen Trust [Member] | |||||||||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 492,000 | ||||||||||
Purchase price | $ 782,450 | ||||||||||
Puechase price description | The Zallen Trust paid the purchase price by transferring to the Company 8,693,888 shares of the Company’s Common Stock, valued at $0.09 per share. The Purchase Agreement also provided that Mr. Zallen transfer to the Company an additional 400,000 shares of Common Stock to settle $36,000 in back rent owed at the time of the sale. | ||||||||||
Forgiveness of salary accruals for services | $ 367,000 | ||||||||||
Land in pioneer business park [Member] | |||||||||||
Payments to Acquire Property, Plant, and Equipment | $ 326,629 | ||||||||||
Debt Instrument, Face Amount | 267,129 | ||||||||||
Real estate list price | $ 399,000 | ||||||||||
Proceeds from Sale of Property, Plant, and Equipment | $ 349,000 | ||||||||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 5,400 | ||||||||||
Impairment of development of land | $ 31,843 | ||||||||||
Mortgages Payable | |||||||||||
Debt Instrument, Face Amount | $ 625,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||||||||
Debt Instrument, Payment Terms | The monthly payments of $3,355 for the initial 12 months, which increased to 6% per annum for the monthly payments of $3,747 for the following 48 months. | ||||||||||
Long-term Debt, Gross | 598,502 | $ 605,359 | |||||||||
Mortgages Three | |||||||||||
Debt Instrument, Face Amount | $ 267,129 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ||||||||||
Debt Instrument, Payment Terms | A maturity date of the earlier of (a) October 1, 2017 or the date construction begins on the condominium building proposed to be built. | ||||||||||
Long-term Debt, Gross | $ 267,129 | 0 | 0 | ||||||||
Mortgages Three | Amendament | |||||||||||
Debt Instrument, Face Amount | $ 252,129 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ||||||||||
Debt Instrument, Payment Terms | Required interest only monthly payments of $1,261 from November 2017 through June 2018 with the remaining amount due in the form of a final balloon payment in July 2018. | ||||||||||
Repayments of Debt | $ 15,000 | ||||||||||
Mortgages Two | |||||||||||
Debt Instrument, Face Amount | $ 120,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | ||||||||||
Debt Instrument, Payment Terms | Required 56 monthly payments of $883, and required a balloon payment of $104,329 on October 15, 2018, the maturity date. | ||||||||||
Long-term Debt, Gross | 0 | 0 | |||||||||
Debt Instrument, Collateral Amount | 120,000 | ||||||||||
Mortgages one | |||||||||||
Debt Instrument, Face Amount | $ 930,220 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.75% | ||||||||||
Debt Instrument, Payment Terms | Required 58 monthly payments of $5,946 and required a balloon payment of $802,294 on June 28, 2018, the maturity date. | ||||||||||
Long-term Debt, Gross | $ 0 | $ 0 |
Note 5 - Assets Held for Sale _
Note 5 - Assets Held for Sale : Discounted Operations of Smoke on the water and WCS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Net revenues | $ 565,314 | $ 335,168 | $ 1,927,251 | $ 545,752 |
Operating expenses | ||||
General and administrative | 101,065 | 59,186 | 267,640 | 218,430 |
Depreciation, amortization and impairment | 2,535 | 1,304 | 11,679 | 2,273 |
Total operating expenses | 878,665 | 457,049 | 2,700,801 | 1,038,567 |
Income (Loss) from operations | (606,099) | (239,758) | (1,712,729) | (714,908) |
Interest expense | (8,937) | (15,625) | (26,917) | (33,200) |
Income (loss) from discontinued operations | 0 | (15,763) | 491,885 | 4,559 |
Discontinued Operations [Member] | ||||
Net revenues | 0 | 10,800 | 14,400 | 79,931 |
Operating expenses | ||||
General and administrative | 0 | 19,573 | 7,964 | 35,861 |
Depreciation, amortization and impairment | 0 | 6,990 | 6,990 | 20,970 |
Total operating expenses | 0 | 26,563 | 14,954 | 56,831 |
Income (Loss) from operations | 0 | (15,763) | (554) | 23,100 |
Gain on Sale | 492,439 | (5,412) | ||
Interest expense | 0 | 0 | 0 | (13,129) |
Income (loss) from discontinued operations | $ 0 | $ (15,763) | $ 491,885 | $ 4,559 |
Note 5 - Assets Held for Sale_3
Note 5 - Assets Held for Sale : Assets and liabilities disposed (Details) | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Assets: | |
Lease receivable | $ 40,804 |
Prepaid expenses | 5,152 |
Property, plant and equipment, net | 809,281 |
Other assets | 6,150 |
Total Assets | 861,387 |
Liabilities: | |
Accrued liabilities | 367,367 |
Other liabilities | 79,100 |
Total Liabilities | 446,467 |
Net Assets | 414,920 |
Consideration: | |
Purchaser return 9,093,888 shares of common stock, FMV at $0.10 | 909,389 |
Payment on certain items during closing | (2,030) |
Total consideration | 907,359 |
Gain on sale of WCS | $ 492,439 |
Note 5 - Assets Held for Sale_4
Note 5 - Assets Held for Sale : Groups of assets and liabilities held for sale of Smoke on the water and WCS (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
ASSETS | |||
Prepaid expenses | $ 245,081 | $ 1,434,946 | |
Property, plant and equipment, net | 845,920 | 857,599 | |
TOTAL ASSETS | 2,240,425 | $ 3,813,722 | 3,813,722 |
LIABILITIES | |||
TOTAL LIABILITIES | 1,673,760 | 1,781,342 | |
Smoke on the water and WCS [Member] | |||
ASSETS | |||
Lease receivable, net of allowance for doubtful accounts | 0 | 26,403 | |
Prepaid expenses | 0 | 10,299 | |
Property, plant and equipment, net | 0 | 816,271 | |
Other assets | 0 | 6,150 | |
TOTAL ASSETS | 0 | 859,123 | |
LIABILITIES | |||
Accounts payable and Accrued liabilities | 0 | 367,504 | |
Other liabilities | 0 | 79,100 | |
TOTAL LIABILITIES | 0 | 446,604 | |
NET ASSETS | $ 0 | $ 412,519 |
Note 5 - Assets Held for Sale_5
Note 5 - Assets Held for Sale : assets held for sale on Pioneer Property and Eagle Mountain Property (Details) - USD ($) | Mar. 31, 2020 | Jun. 30, 2019 |
Mortgage | $ 0 | $ 0 |
Eagle Mountain Property [Member] | ||
Mortgage | 0 | 0 |
Pioneer Property [Member] | ||
Mortgage | $ 0 | $ 0 |
Note 6 - Mortgages Payable (Det
Note 6 - Mortgages Payable (Details) - USD ($) | Sep. 04, 2019 | Jun. 30, 2017 | Mar. 31, 2020 | Jun. 30, 2019 |
Smoke on the Water [Member] | ||||
Offering price | $ 850,000 | |||
Impairment change | $ 112,000 | |||
Mortgages Payable | ||||
Debt Instrument, Face Amount | $ 625,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||
Debt Instrument, Payment Terms | The monthly payments of $3,355 for the initial 12 months, which increased to 6% per annum for the monthly payments of $3,747 for the following 48 months. | |||
Long-term Debt, Gross | 598,502 | $ 605,359 | ||
Principal payment of mortgage | 6,856 | |||
Interests payment of mortgage | $ 26,867 |
Note 6 - Mortgages Payable _ Mo
Note 6 - Mortgages Payable : Mortgage related to assets held for sale on Smoke on the Water (Details) - USD ($) | Mar. 31, 2020 | Jun. 30, 2019 |
Mortgage | $ 598,502 | |
Smoke on the Water [Member] | ||
Mortgage | $ 598,502 | $ 605,359 |
Note 6 - Mortgages Payable _ Ag
Note 6 - Mortgages Payable : Aggregate principal payments (Details) | Mar. 31, 2020USD ($) |
Disclosure Text Block [Abstract] | |
2020 | $ 6,072 |
2021 | 8,904 |
2022 | 583,526 |
Mortgage | $ 598,502 |
Note 7 - Property and Equipme_3
Note 7 - Property and Equipment, Net (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Text Block [Abstract] | ||||
Depreciation expense | $ 2,535 | $ 1,304 | $ 11,679 | $ 2,273 |
Note 7 - Property and Equipme_4
Note 7 - Property and Equipment, Net: Property and Improvements (Details) - USD ($) | Mar. 31, 2020 | Jun. 30, 2019 |
Text Block [Abstract] | ||
Lake Selmac Property | $ 768,782 | $ 768,782 |
Leaseholder improvement | 67,644 | 67,644 |
Furniture and Fixtures | 25,892 | 25,892 |
Property, Plant and Equipment, Gross | 862,318 | 862,318 |
Less: accumulated depreciation and impairment | (16,398) | (4,719) |
Property, Plant and Equipment, Net | $ 845,920 | $ 857,599 |
Note 8 - Promissory Note Rece_2
Note 8 - Promissory Note Receivable (Details) - USD ($) | Jul. 08, 2019 | Mar. 31, 2020 | Mar. 31, 2020 |
Periodic payment | $ 6,000 | ||
Interest income | $ 1,657 | $ 4,723 | |
Loan Agreement | Promissory note | |||
Loan | $ 100,000 | ||
Rate of interest | 5.00% | ||
Periodic payment | $ 2,000 |
Note 9 - Accrued Liabilities (D
Note 9 - Accrued Liabilities (Details) - USD ($) | Mar. 31, 2020 | Jun. 30, 2019 |
Payables and Accruals [Abstract] | ||
Accrued salaries and wages | $ 60,967 | $ 113,823 |
Accrued interest on mortgage | 21,431 | 21,431 |
Accrued expenses | 34,092 | 156,469 |
Accrued Liabilities | $ 116,490 | $ 291,723 |
Note 10 - Capital Stock (Detail
Note 10 - Capital Stock (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2016 | Aug. 29, 2019 | Jun. 22, 2018 | |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 | 175,000,000 | 500,000,000 | 175,000,000 | ||||
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 | 5,000,000 | 50,000,000 | 5,000,000 | ||||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Stock Issued During Period, Value, Issued for Services | $ 214,270 | ||||||||
Proceeds from private placement | $ 350,000 | $ 1,165,000 | |||||||
Stock Retired During Period, Value | $ (909,389) | ||||||||
Common stock issued for settlement of liabilities | 1,288,984 | ||||||||
Liability settlement | $ 91,433 | ||||||||
Stock based compensation | $ 23,230 | ||||||||
Option exercised | 0 | 0 | |||||||
Options unvested | 0 | 0 | 0 | ||||||
Options outstanding intrinsic value | $ 0 | $ 0 | $ 0 | ||||||
Option outstanding | 500,000 | ||||||||
Series A Convertible Preferred Stock | |||||||||
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 | |||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |||||||
Private Placement [Member] | |||||||||
Number of common stock issued in private placement | 3,277,778 | ||||||||
Proceeds from private placement | $ 200,000 | ||||||||
Equity Incentive Plan | |||||||||
Granted options to purchase | 2,000,000 | ||||||||
Term | 10 years | ||||||||
Option exercised | 1,500,000 | ||||||||
Option Vested | 500,000 | ||||||||
2015 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | The Incentive Plan is administered by the Board unless a separate delegation to an administrator is made by the Board. Options granted under the Incentive Plan carry a maximum term of 10 years, except to a grantee who is also a 10% beneficial owner at the time of grant, in which case the maximum term is 5 years. | ||||||||
2015 Stock Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | The Stock Plan allows for the issuance of up to a maximum of 2 million shares of Common Stock of the Company. The Stock Plan is administered by the Board unless a separate delegation to an administrator is made by the Board. | ||||||||
WCS Enterprises, LLC | |||||||||
Number of common stock retired | 9,093,888 | ||||||||
Stock Retired During Period, Value | $ 869,380 | ||||||||
Offset lease receivable | $ 40,000 | ||||||||
Officers And Directors | |||||||||
Stock Issued During Period, Shares, Issued for Services | 3,000,000 | 3,175,948 | |||||||
Stock Issued During Period, Value, Issued for Services | $ 150,000 | $ 290,882 | |||||||
Bombshell Technologies | |||||||||
Stock issued | 110,675,328 |
Note 10 - Capital Stock_ Schedu
Note 10 - Capital Stock: Schedule of Share-based Compensation, Stock Options, Activity (Details) - $ / shares | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Text Block [Abstract] | |||
Outstanding, Beginning Balance | 500,000 | 500,000 | |
Outstanding, Beginning Balance, Weighted Average Exercise Price | $ 0.40 | $ 0.40 | |
Outstanding, Beginning Balance, Weighted Average Grant Date Fair Value | $ 0.52 | $ 0.52 | |
Options issued | 0 | 0 | |
Options issued, Weighted Average Exercise Price | $ 0 | $ 0 | |
Options issued, Weighted Average Grant Date Fair Value | $ 0 | $ 0 | |
Options expired | 0 | 0 | |
Options expired, Weighted Average Exercise Price | $ 0 | $ 0 | |
Options expired, Weighted Average Grant Date Fair Value | $ 0 | $ 0 | |
Exercised | 0 | 0 | |
Exercised, Weighted Average Exercise Price | $ 0 | $ 0 | |
Options Exercised, Weighted Average Grant Date Fair Value | $ 0 | $ 0 | |
Outstanding, Ending Balance | 500,000 | 500,000 | 500,000 |
Outstanding, Ending Balance, Weighted Average Exercise Price | $ 0.40 | $ 0.40 | $ 0.40 |
Outstanding, Ending Balance, Weighted Average Grant Date Fair Value | $ 0.52 | $ 0.52 | $ 0.52 |
Outstanding, Weighted Average Remaining Term in Years | 1 year 29 days | 1 year 9 months 29 days | 2 years 9 months 29 days |
Note 11 - Related Party Trans_3
Note 11 - Related Party Transactions (Details) | Apr. 03, 2020shares | Apr. 02, 2020shares | May 15, 2019USD ($)Integer$ / sharesshares | Jul. 31, 2018USD ($)shares | Apr. 29, 2019USD ($)shares | Jan. 29, 2019USD ($)shares | Mar. 31, 2020USD ($)ft²$ / sharesshares | Mar. 31, 2019USD ($) | Mar. 31, 2020USD ($)ft²$ / sharesshares | Mar. 31, 2019USD ($) | Jun. 30, 2019USD ($) |
Revenues from related party | $ 534,607 | $ 295,584 | $ 1,657,909 | $ 372,627 | |||||||
Due from related party | $ 0 | 0 | $ 16,854 | ||||||||
Rent payment | 18,732 | ||||||||||
Sublease rent charged | $ 29,419 | ||||||||||
Stock Issued During Period, Value, Issued for Services | 214,270 | ||||||||||
Trading days | Integer | 30 | ||||||||||
Fees | $ 1,511,034 | ||||||||||
Building | |||||||||||
Area of Real Estate Property | ft² | 15,000 | 15,000 | |||||||||
Discontinued Operations [Member] | |||||||||||
Revenues from related party | $ 14,400 | 14,400 | $ 14,400 | 28,800 | |||||||
Officers And Directors | |||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | shares | 300,000 | 2,086,678 | |||||||||
Stock Issued During Period, Shares, Issued for Services | shares | 3,000,000 | 3,175,948 | |||||||||
Stock Issued During Period, Value, Issued for Services | $ 150,000 | $ 290,882 | |||||||||
Bombshell Software | |||||||||||
Advances | $ 53,074 | $ 66,195 | $ 53,074 | $ 66,195 | |||||||
Consultant | |||||||||||
Shares Issued, Price Per Share | $ / shares | $ 0.07758 | ||||||||||
Stock issued during period for compensation payable | shares | 1,000,000 | ||||||||||
Compensation payable | $ 63,000 | ||||||||||
Stock Issued During Period, Shares, Issued for Services | shares | 2,062,299 | ||||||||||
Stock Issued During Period, Value, Issued for Services | $ 160,000 | ||||||||||
Secretary | |||||||||||
Stock Issued During Period, Shares, Issued for Services | shares | 2,706,767 | ||||||||||
Stock Issued During Period, Value, Issued for Services | $ 210,000 | ||||||||||
Chief Executive Officer [Member] | |||||||||||
Description Leasing Arrangements, Operating Lease | The lease term for the grow facility began once the tenant improvements were completed and the premises were occupied in fiscal 2017 and continues for a period of 36 months. The lease on the grow facility commenced in fiscal 2017. | ||||||||||
Salary and Wage, Officer, Excluding Cost of Good and Service Sold | $ 240,000 | ||||||||||
Shares Issued, Price Per Share | $ / shares | $ 0.08 | $ 0.08 | |||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | shares | 3,000,000 | ||||||||||
Prepaid compensation | $ 390,000 | $ 390,000 | |||||||||
Stock Issued During Period, Shares, Issued for Services | shares | 4,124,597 | ||||||||||
Stock Issued During Period, Value, Issued for Services | $ 320,000 | ||||||||||
Board of Directors and Chairman | |||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | shares | 108,853 | ||||||||||
Compensation for service | $ 10,000 | ||||||||||
Chief financial officer | |||||||||||
Salary and Wage, Officer, Excluding Cost of Good and Service Sold | $ 2,500 | ||||||||||
CEO and President | |||||||||||
Shares Issued, Price Per Share | $ / shares | $ 0.12 | $ 0.12 | |||||||||
Terry Kennedy | Restricted Stock [Member] | |||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | shares | 1,970,805 | ||||||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | $ 100,000 | ||||||||||
Unregistered common shares description | Unregistered common shares valued at $0.10 per share for the first $50,000 on July 1, 2018 and of $0.034 for the second $50,000 payable on January 1, 2019 | ||||||||||
Shares payable | $ 394,161 | $ 394,161 |
Note 11 - Related Party Trans_4
Note 11 - Related Party Transactions: Revenue from related parties (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | ||
Revenues from related party | $ 534,607 | $ 295,584 | $ 1,657,909 | $ 372,627 | |
Appreciation Financial | |||||
Revenues from related party | [1] | 195,065 | 586,154 | ||
Mpower Group | |||||
Revenues from related party | 84,096 | 207,467 | |||
Public Employee Retirement Assistance | |||||
Revenues from related party | [1] | 47,261 | 187,189 | ||
Superior Performers | |||||
Revenues from related party | [1] | 180,916 | 649,830 | ||
Others | |||||
Revenues from related party | $ 27,269 | $ 27,269 | |||
[1] | The Company had a significant concentration of revenue from these three customers totaling 90% and 88% of gross revenues during the three and months ended December 31, 2019, respectively. Related entities are controlled by over 5% shareholders of the Company and/or officer/directors of the Company. |
Note 11 - Related Party Trans_5
Note 11 - Related Party Transactions: Accounts receivable from related parties (Details) | Mar. 31, 2020USD ($) | |
Accounts receivable from related parties | $ 468,150 | |
Appreciation Financial | ||
Accounts receivable from related parties | 160,723 | [1] |
Grow Capital | ||
Accounts receivable from related parties | 207,467 | |
Public Employee Retirement Assistance | ||
Accounts receivable from related parties | 19,605 | |
Superior Performers | ||
Accounts receivable from related parties | $ 80,355 | [1] |
[1] | The Company had a significant concentration of accounts receivable from these three customers totaling 92% and 78% of total accounts receivable respectively as at December 31, 2019 and June 30, 2019, respectively. Related entities are controlled by over 5% shareholders of the Company and/or officer/directors of the Company. |
Note 11 - Related Party Trans_6
Note 11 - Related Party Transactions: Costs of sales from related parties (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | ||
Cost of sale, related parties | $ 0 | $ 74,603 | $ 186,354 | $ 96,213 | |
Ambiguous Holdings | |||||
Cost of sale, related parties | [1] | 0 | 7,555 | ||
Trendsic Corporation | |||||
Cost of sale, related parties | [1] | $ 0 | $ 178,799 | ||
[1] | The Company had a significant concentration of total costs of goods sold from these two related party vendors totaling 11% and 30% of costs of goods sold in the three and six months ended December 31, 2019, respectively. |
Note 11 - Related Party Trans_7
Note 11 - Related Party Transactions: General and administrative related parties (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
General and administrative - related parties | $ 56,819 | $ 30,722 | $ 167,261 | $ 36,208 |
Zeake | ||||
General and administrative - related parties | $ 56,819 | $ 167,260 |
Note 11 - Related Party Trans_8
Note 11 - Related Party Transactions: Accounts payable to related parties (Details) | Mar. 31, 2020USD ($) |
Accounts payable to related parties | $ 164,364 |
Zeake | |
Accounts payable to related parties | 61,948 |
Trendsic Corporation | |
Accounts payable to related parties | $ 102,416 |
Note 12 - Leases (Details)
Note 12 - Leases (Details) | 9 Months Ended |
Mar. 31, 2020 | |
Green Valley Corporate Center | |
Lessee, Operating Lease, Description | The lease has a term of 123 months, an abatement of the first four months of rent during which time the Company would complete certain required leasehold improvements and escalating base monthly rent per square foot ranging between $2.00 to $3.00 per square foot. |
Note 12 - Leases _ Schedule of
Note 12 - Leases : Schedule of future aggregate minimum lease payments (Details) - USD ($) | Mar. 31, 2020 | Jun. 30, 2019 |
Disclosure Text Block [Abstract] | ||
2020 | $ 28,821 | |
2021 | 39,457 | |
2022 | 40,622 | |
2023 | 41,906 | |
2024 | 43,190 | |
Remaining periods | 185,488 | |
Total future minimum lease payments | 379,484 | |
Less: imputed interest | (97,040) | |
Total | 282,444 | |
Current portion of operating lease | 4,774 | $ 0 |
Long term of operating lease | $ 277,670 | $ 0 |
Note 13 - Segment Reporting_ Sc
Note 13 - Segment Reporting: Schedule of Segment Reporting Information, by Segment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Jun. 30, 2019 | |
Revenue | $ 565,314 | $ 335,168 | $ 1,927,251 | $ 545,752 | ||
Income (Loss) from operations | (606,099) | (239,758) | (1,712,729) | (714,908) | ||
Assets | 2,240,425 | 2,240,425 | $ 3,813,722 | $ 3,813,722 | ||
Bombshell | ||||||
Revenue | 565,314 | 298,072 | 1,800,739 | 377,599 | ||
Income (Loss) from operations | (585,886) | (223,503) | (1,703,146) | (713,704) | ||
Assets | 1,445,031 | 1,445,031 | 2,899,923 | |||
Resort at Lake Selmac | ||||||
Revenue | 0 | 37,096 | 126,512 | 168,153 | ||
Income (Loss) from operations | (20,213) | $ (16,255) | (9,583) | $ (1,204) | ||
Assets | $ 795,394 | $ 795,394 | $ 913,799 |
Note 14 - Other Events (Details
Note 14 - Other Events (Details) | Dec. 13, 2019 |
Trendsic Corporation | |
Damages description | Trendsic Corporation, Inc. (“Trendsic”), a related party entity which is 49% controlled by Joel A. Bonnette (formerly CEO of our wholly-owned subsidiary Bombshell Technologies, Inc.)filed a lawsuit in the 19th Judicial District Court in East Baton Rouge Parish, Louisiana against Joel A. Bonnette, Jared Bonnette, Bombshell Software, LLC and Bombshell Technologies, Inc. The plaintiff is disputing the ownership of certain intellectual property of Bombshell Technologies, Inc. and alleging misappropriation of trade secrets of Trendsic. Trendsic is seeking an unspecified amount of damages in excess of $75,000 and treble damages under the Louisiana Uniform Trade Secrets Act, as well as injunctive relief. |
Note 15 - Subsequent Events (De
Note 15 - Subsequent Events (Details) - shares | Jul. 01, 2020 | May 13, 2020 | Apr. 03, 2020 | Apr. 02, 2020 | Apr. 01, 2020 | Mar. 31, 2020 |
Chief Executive Officer [Member] | ||||||
Stock issued for compensation | 3,000,000 | |||||
Officers And Directors | ||||||
Stock issued for compensation | 300,000 | 2,086,678 | ||||
Subsequent Event [Member] | ||||||
Reverse Split | 1 for 20 | |||||
Subsequent Event [Member] | Chief Executive Officer [Member] | ||||||
Stock isued | 1,000,000 | 1,000,000 |